The $50 billion merger between insurance giants Cigna and Anthem has been in the works for almost a year now. Although critics have been doubtful that this merger will go through due to anti-trust issues, it seems that federal regulators are publicly demonstrating disdain for this move.
As the companies continue to wade through regulatory push back, another major deal is also being reviewed, which is much smaller by comparison. The Aetna-Humana merger is a $37 billion deal that appears to have less obstacles to tackle due to it being a smaller transaction.
The Anthem-Cigna deal would affect the 45 million participants in both companies’ plans. The scale of this merger leads officials to be concerned that it would reduce competition within the marketplace, leaving Americans to feel the financial burden of this newly formed insurance company.
Should the Aetna-Humana deal go through, there is concern that Anthem and Cigna’s merger will be sidelined, essentially placing them at a competitive disadvantage. As more consolidation occurs within this industry, companies of all sizes are looking at ways to stay competitive in this evolving market.
There are several pieces to this ever complicated puzzle between both merger opportunities. To learn more information about how both deals are progressing, click here to read a Bloomberg.com article.