After first turning down Anthem's $47 billion merger bid just a few short weeks ago, health insurance giant Cigna announced last week that it would be purchased by Anthem in a deal worth $54 billion, including debt carried by the company. This will effectively create a mammoth organization that has a tight grip on the U.S. health insurance industry.
According to the Associated Press, the merger of Anthem and Cigna will form the nation's largest health insurance provider, as it will have around 53 million Americans enrolled in various health care plans. This is the latest move by major insurers — particularly Anthem, which also bought Humana in early July — looking to carve out a massive chunk of the market.
Should this deal close and go through properly, it will fundamentally transform the health care industry in the United States. The five biggest insurance companies in the country will be down to just three, giving people less choice even as insurers attempt to figure out the national health care overhaul that has come under the Affordable Care Act.
Anthem was quick to point out that by buying Cigna, it will have a much broader base with which to spread costs and expenses around. It will also allow the company to make greater investments in technology over the industry's biggest customer pool. Consumers won't feel any effects from the merger for at least a year, according to reports surrounding the merger.
Whether you choose to go to the home healthcare route, or visit a local physician, be sure to check back here again for more health insurance help and information, or contact a member of our team to learn more about available options.
