(Bloomberg) — As more former hippies need hip replacements, health insurers from Humana Inc. to WellCare Health Plans Inc. are turning into hot targets.

Humana and WellCare, both providers of Medicare coverage, are generating record revenue as aging U.S. baby boomers drive an increase in enrollment in the government-sponsored program for the elderly. Insurers are also benefiting from expanded Medicaid coverage for the poor under Obamacare.

Larger insurers such as Aetna Inc. and Anthem Inc. would like to continue expanding beyond coverage that's paid for by employers, and could be interested buyers. A deal for either Humana, valued at $27 billion, or Medicaid provider Centene Corp., at $8.3 billion, would be the biggest acquisition of a managed-care provider in more than a decade. WellCare is smaller at $4.1 billion.

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