If the deal falls apart, Aetna would have to pay Humana $1 billion, according to the terms of the merger agreement. Humana, while smaller than its rivals, has a strong position in the Medicare Advantage market and was viewed as an attractive acquisition. UnitedHealth, Humana and Aetna were the three largest players in the Medicare Advantage market, according to an analysis by the Kaiser Family Foundation last year. The government has blocked mergers among large hospital systems and contributed to dismantling the $152 billion deal between Pfizer and Allergan. Humana’s Medicare Advantage business is particularly attractive in the current environment, Ana Gupte, an analyst with Leerink Partners, told investors.

Source: New York Times January 23, 2017 17:58 UTC