Tag Archives: acquisition

Aetna has questions to answer regarding offer to buy Humana

Joseph Burns

About Joseph Burns

Joseph Burns (@jburns18), a Massachusetts-based independent journalist, is AHCJ’s topic leader on health insurance. He welcomes questions and suggestions on insurance resources and tip sheets at joseph@healthjournalism.org.

Any health insurance company that seeks to buy another insurer will have some tough questions to answer. So, after Aetna made a formal offer to buy Humana on Thursday and Centene offered to buy Health Net on Wednesday, one of those questions has to be: Will consumers benefit?

As Bruce Japsen noted in Forbes, Aetna and Humana said in a statement:

“The combined entity will help drive better value and higher-quality health care by reducing administrative costs, leveraging best-in-breed practices from the two companies – including Humana’s chronic-care capabilities that measurably improve health outcomes for larger populations – and enabling the company to better compete with more cost effective products.”

Statements like these will form the basis of the companies’ arguments before the federal Department of Justice, which has already said it will scrutinize any mergers or acquisitions involving health insurers. Continue reading