Morning Briefing
Summaries of health policy coverage from major news organizations
New York Life Eyeing Cigna's Business That Sells Non-Medical Insurance Through Employers In Possible $6B Deal
The Wall Street Journal: New York Life In Talks To Buy Cigna Unit For Up To $6 Billion
New York Life Insurance Co. is negotiating with Cigna Corp. to acquire a unit that sells nonmedical insurance products to employers, a deal that could be valued at as much as $6 billion, according to people familiar with the matter. Cigna in recent months has been seeking a buyer for a business that sells life, accident and disability-income insurance to employers for their workers, in a move that would help the health giant focus on its core business, according to the people. (Scism, Cimilluca and Wilde Mathews, 12/10)
Bloomberg: New York Life In Talks To Buy Cigna Non-Health Insurance Unit
Insurers have been striking deals for units that sell insurance through employers. Lincoln National Corp. bought a group-benefits business from Liberty Mutual Holding Co. in 2018 for $3.3 billion. Hartford Financial Services Group Inc. acquired an Aetna Inc. life and disability business in 2017. The businesses are attractive to insurers seeking to diversify. The units are less capital-intensive, don’t rely as much on investment income and provide cash flow, Evercore ISI analysts said in an August note after initial reports that Cigna was looking to sell the business. (Chiglinsky and Tozzi, 12/10)
Modern Healthcare: KPC Group Misses Key Deadline On Verity Hospitals Purchase
The corporation poised to buy Verity Health's four remaining hospitals missed last week's court-appointed deadline to close the deal, which appears increasingly uncertain. Court filings show the bankrupt El Segundo, Calif.-based health system's frustration with the would-be buyer, Strategic Global Management, owner of the KPC Group, escalated after SGM missed the Dec. 5 deadline. Verity tried unsuccessfully to get a judge to force SGM's leaders to appear in court on Wednesday and explain why they didn't close the $610 million deal, announced almost a year ago. (Bannow, 12/10)
The Wall Street Journal: Tiny Tax Moves Can Save You Big On Medicare Premiums
Now is a good time for higher-earning Medicare recipients to check whether a small reduction in this year’s income could make a big difference in future premiums. Here’s why. Medicare premiums are based on income, and the formulas have “cliffs” that can raise premiums steeply if income rises by even one dollar. In addition, there’s a new inflation adjustment for 2020 that complicates the situation. (Saunders, 12/10)
