Two giant health care companies, Aetna and Humana, just announced a spectacular merger. It will take time for the dust to settle, but already the deal raises a number of considerations, pro and con. At the end of the day, depending on whose perspective is voiced, the new group is a big winner or a big loser. It remains to be seen, as the merger won't even be completed until 2016. Time will tell.
Money is definitely a factor in the decision, as each company has more than $100 billion in annual revenue. Aetna is the third largest U.S. health insurer, and Humana ranks No. 4. Together, they would sit atop the industry, according to the Wall Street Journal.
The agreement "would bolster Aetna's presence in the state- and federally funded Medicaid program and Tricare coverage for military personnel and their families," according to the Associated Press. And news outlet Reuters has pointed out that the deal between Aetna and Humana "would nearly triple Aetna's Medicare Advantage business." The merger hopes to avoid too much anti-trust scrutiny from the federal government, typical in big deals like this one.
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