Wednesday, July 22, 2015

Health Insurers' Merger Mania on Hold?

Just a few weeks ago, it was declared that a great pent-up demand for mergers and acquisitions among health insurers would unleash itself as a result of Obamacare’s confirmation by the Supreme Court. And so it did, for a while at least. Today, the consolidation seems less sure.

In 2011, two deals, Cigna's acquisition of Health Spring and Aetna's purchase of Coventry Health Care, were worth $9.5 billion. Today’s three pending deals are much larger, amounting to almost one hundred billion dollars.

However, all three of the deals announced recently are looking a little shaky. Investors appear to have lost confidence that these combinations will take place.

Read the entire column at Forbes.

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