Health insurance giant Humana Inc. is compelled to consider selling its company. This drastic measure is expected to be followed by the merger of the company to one of its biggest competitors, most likely.
This is an issue that most health insurance companies are currently facing, as they find themselves buried in the immense challenges created by the Affordable Care Act. There are also great business opportunities generated by it, but they are somewhat different than the circumstances that private healthcare companies were accustomed to be dealing with.
There is no official statement on Humana’s intentions of reinventing itself, as they are still weighting their options in the hopes of finding the best possible combination of solutions out there.
It appears that some of the companies that Humana has been on talks with regarding a potential merger at some point are in fact some of its main contenders, Aetna Inc. and Cigna Corp. . However, there is still no official statement on the matter.
This information was provided to the Wall Street Journal by a person who wished to remain anonymous, as the matter is still labeled confidential.
Therefore, it was no surprise that neither Humana, Aetna or Cigna agreed to comment on the matter, when they were contacted by journalists.
Humana Inc. has been valued at $26,72 billion according to the latest financial assessments. Furthermore, it has been having a very good time at the market lately, as its shares have gone up by 42% in the last year.
After the rumor about the sale was released, Humana’s shares have actually gone up 20%, reaching an unprecedented value of $214,65. It is actually a strong possibility that these sale rumors and talks of mergers with other healthcare moguls could have been started by Humana itself, despite the unethical nature of such a fact.
“We view this step as a trigger event in a managed-care industry overdue for consolidation” wrote financial analysts from Leerink Partners LLC, who expect to see an abundance of business combination tactics carried out by health insurance giants in the next year.
For the moment, there is no official information regarding Humana’s plans, therefore it is not officially on the market just yet. However, financial analysts predict that a merger with another medical care giant is the likeliest outcome for the company.
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