Joe Buglewicz / Bloomberg through Getty Photos
Key Takeaways
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Discussions over Cigna’s potential buy of Humana reportedly have resumed after the 2 well being insurers did not strike a deal final yr.
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Bloomberg mentioned the talks are of their early levels.
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Humana has struggled currently as Medicare modifications negatively influence outcomes, whereas Cigna is promoting its Medicare enterprise to HCSC.
Humana (HUM) shares edged greater Monday morning on a report that The Cigna Group (CI) has resumed discussions to purchase its smaller medical insurance rival after negotiations fell aside final yr. Cigna shares declined.
Bloomberg reported after markets closed Friday that the 2 corporations have held casual talks a few deal not too long ago, though they’re within the early levels.
The information website famous that Humana has been suffering lately, partially due to authorities modifications within the rankings for its Medicare plans. It identified that Cigna is trying to shut the $3.3 billion sale of its Medicare Benefit enterprise to Well being Care Service Company introduced final January, explaining that the offloading of its Medicare part would probably make a merger with Humana extra more likely to go muster with regulators.
When reached by Investopedia, spokespersons for each Cigna and Humana mentioned their companies do not touch upon market rumors and hypothesis.
Humana shares have misplaced greater than 40% of their worth this yr. Cigna shares fell about 4.5% Monday morning however are about 7% greater in 2024.
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