Humana Explores Possible Sale As Health Insurance Marketplace Changes
News outlets report that Humana's presence in Medicare Advantage program makes it a prime target for acquisition. And, as reports emerged about its possible sale, the insurer's stock soared.
The Wall Street Journal:
Health Insurer Humana Explores Sale
Health insurer Humana Inc. is exploring a possible sale of the company, a move that could trigger a round of mergers in an industry grappling with challenges and opportunities the federal health-care overhaul has created. Faced with pressure to cut costs and find ways to profit from the potential new customers the Affordable Care Act is generating, the big health insurers have long been expected by analysts to turn to mergers that will give them the heft to better compete as the industry evolves. (Hoffman, Mattioli, Cimilluca and Wilde Mathews, 5/29)
The New York Times:
Humana Is Said To Consider Sale Of Company
The wave of deal-making that has swept across the health care industry now appears poised to pull in health insurers, a development driven by the Obama administration’s insurance overhaul. Humana, one of the country’s largest health insurers, is weighing a potential sale of itself after having been approached by several competitors, people briefed on the matter said on Friday. These people, who were not authorized to speak publicly, cautioned that the company had made no decisions and might choose not to sell. (de la Merced and Creswell, 5/29)
Bloomberg:
Humana's Baby-Boomer Focus Makes Insurer A Prize For Cigna
Humana Inc. has become an acquisition target thanks to its big presence in Medicare Advantage, the private-sector version of the U.S. program that’s one of the fastest-growing pieces of the health insurance market.
Enrollment in Medicare is climbing as more Americans turn 65 and become eligible for the health program for the elderly and disabled. Membership is expected to rise to 68.4 million in 2023, up 26 percent from this year, according to the Centers for Medicare & Medicaid Services. (Tracer, 5/29)
USA Today:
Humana Shares Close Up 20% On Report Of Possible Sale
Humana shares closed up 20% Friday after a day of media reports that the company could be for sale. Shares of Louisville-based Humana, one of the largest U.S. insurers were up $36.24 to close at $214.65. Analysts have been discussing the possibility that large health insurers flush with cash might be looking for a big acquisition. Deal-friendly low interest rates and expectations for another wave of consolidation also are fueling the speculation. (O'Donnell, 5/29)
The Associated Press:
Report: Health Insurer Humana Considering A Sale
Humana shares soared well beyond all-time high prices Friday afternoon on speculation that the company, one of the nation's biggest health insurers, might be up for sale. Analysts have been discussing for a few weeks the possibility that large health insurers flush with cash may be hunting for a big acquisition. Deal-friendly low interest rates and expectations for another wave of consolidation also are fueling the speculation. (Murphy, 5/30)
