Anthem, Inc. recently announced that it has reached an agreement to buy Cigna Corporation. This announcement comes shortly after Aetna announced plans to acquire Humana. With these two acquisitions, the top five major insurance companies in the industry would be consolidated to three key players:
- Anthem
- UnitedHealthcare
- Aetna
Anthem reportedly offered more than $48 billion for Cigna. The first offer that Anthem made for $47.5 billion was rejected by Cigna. In the Aetna deal, Humana was acquired for $34 billion.
Government officials must approve the deal before it becomes final are likely to weigh the impact of reduced competition, including rising costs for consumers and employers.