Though they are both pursuing mergers with other companies, Cigna CEO David Cordani and Aetna CEO Mark Bertolini recently expressed very similar ideas about the benefits of health insurer consolidation and the importance of shifting to value-based payment models.
Anthem and Cigna took part in a lengthy courting process before they announced they had struck a deal, the companies' latest Securities and Exchange Commission filing reveals.
Having already spoken out against the proposed mergers in the health insurance industry, the American Hospital Association has now ratcheted up its scrutiny of one specific mega-deal in a letter to the Department of Justice.
In addition to adding to the insurance industry's wave of consolidation, the news of Anthem's deal to acquire Cigna also reinforced how much value the largest health insurers place in the pharmacy benefit management business.
When Anthem and Cigna announced a $54.2 billion deal Friday, it marked an abrupt turnaround from where negotiations between the two health insurers stood just a month earlier.
Health insurance giants Anthem and Cigna officially announced Friday morning that Anthem will acquire its smaller counterpart in a $54.2 billion deal. Valued at $188 per share, it is the largest ever among U.S. health insurers.
Anthem and Cigna's acquisition saga may finally bear fruit, as the two companies are poised to announce an approximately $48 billion deal this week.
The unwillingness of both Cigna and Anthem's chief executive officers to see eye-to-eye may be stalling a merger between the two companies.
The chief executives of three of the major U.S. health insurers currently locked in merger maneuvering have a lot to gain if takeover bids for their companies come to fruition, Bloomberg reports
Cigna CEO David Cordani received a drastic increase in total compensation over the course of one year. His pay last year rose 4.5 times the amount he earned in 2012, the Hartford Courant reported.