Major health insurers under pressure to yield deals after Aetna’s Humana deal

After Aetna Inc. and Humana Inc. merged, other major health insurers have also come under pressure to sign such deals. According to reports, next deal could be between Cigna Corp. and Anthem Inc. These insurers were said to be interested in buying Humana.

However, Humana was acquired by Aetna on Friday. According to Ana Gupte, an analyst at Leerink Partners in New York, “It paves the way for Cigna and Anthem. Cigna has fewer choices at this point”.

Aetna acquired Humana in a $35 billion cash-and-stock deal. It is the first such deal among the largest companies in the industry. Now, major health insurers are concerned regarding expanding more following the US reform known as Obamacare. The act led to a competition for new customers and cut margins.

It has been reported that Cigna refused offers from Anthem for up to $184 a share in cash and stock. It referred to concerns regarding governance and management. On June 20, Anthem announced its bid that could lead to creation of the largest US health insurer with approximately 53 million members.

As per reports, both the companies were in talks to acquire Humana. Last month, sources familiar with the matter told that. They asked not be named as the information was a private matter. Gupte said that now Humana is not an option, so an Anthem-Cigna deal could be yielded probably at nearly $190 to $195 a share.

Matthew Asensio at Cigna and Kristin Binns, a spokeswoman at Anthem were reached for comment but they declined.