well....I guess you could say lowering costs will be a result...but their not going down....
Anthem(ANTM), a Blue Cross and Blue Shield insurer, said it would buy all of Cigna's (CI)shares in a cash and stock transaction.
The deal is expected to close in the second half of 2016, if it passes state regulatory approvals and other requirements. The merged insurer would cover 53 million members.
The merger would leave only three major players in the insurance industry.
Earlier this month, Aetna (AET) struck a deal to buy Humana (HUM)for $37 billion, which would cover 33 million members.
The third remaining health insurer is UnitedHealth (UNH), which just completed its own $12.8 billion acquisition of Catamaran, a pharmacy-benefits manager and prescription provider.
There are titanic shifts going on in the entire healthcare space, where pharmacies are undergoing their own wave of consolidation. In May, CVS Health (CVS) agreed to acquire Omnicare (OCR) for $12.7 billion. And back in February, Rite Aid (RAD) agree to acquire EnvisionRx for $2 billion.
Hospital companies have also been expanding.
Experts say one factor driving the mergers is the Affordable Care Act.
Obamacare has meant more business for major insurers because more Americans have health coverage, but the law has also put more pressure on industry profits.
Anthem(ANTM), a Blue Cross and Blue Shield insurer, said it would buy all of Cigna's (CI)shares in a cash and stock transaction.
The deal is expected to close in the second half of 2016, if it passes state regulatory approvals and other requirements. The merged insurer would cover 53 million members.
The merger would leave only three major players in the insurance industry.
Earlier this month, Aetna (AET) struck a deal to buy Humana (HUM)for $37 billion, which would cover 33 million members.
The third remaining health insurer is UnitedHealth (UNH), which just completed its own $12.8 billion acquisition of Catamaran, a pharmacy-benefits manager and prescription provider.
There are titanic shifts going on in the entire healthcare space, where pharmacies are undergoing their own wave of consolidation. In May, CVS Health (CVS) agreed to acquire Omnicare (OCR) for $12.7 billion. And back in February, Rite Aid (RAD) agree to acquire EnvisionRx for $2 billion.
Hospital companies have also been expanding.
Experts say one factor driving the mergers is the Affordable Care Act.
Obamacare has meant more business for major insurers because more Americans have health coverage, but the law has also put more pressure on industry profits.
