Former President Donald Trump’s deregulatory approach could smooth the path for the deal by relaxing restrictions on Medicare Advantage, allowing Cigna to gain from Humana’s dominant position in the Medicare Advantage market. Additionally, the company is grappling with a quality rating downgrade of its largest Medicare Advantage plan, which jeopardizes future earnings. Over time, this consolidation could erode the diversity of health plans available to consumers, particularly in specialized markets like Medicare Advantage. Ohlen E, Nathan-Kazi J. Cigna, Humana resume merger talks, report says. Joszt L. Health insurance markets remain highly concentrated in majority of US.

Source: Wall Street Journal November 06, 2024 13:04 UTC