Aetna Is Set to Buy Humana

Humana Inc. may be making some major changes in the near future. Humana, a U.S. health insurance company, has received a number of offers to buy them out including an offer from Cigna. Earlier this week, Aetna through their hat in the ring and has made a formal cash and stock bid to buy out Humana. The market value of Humana, as of Thursday, was valued at $27.59 billion. As of right now, according to The Wall Street Journal, Aetna is set to buy Humana for $34.1 billion. If the deal with Kenneth Griffin goes through Aetna would be paying roughly $230 a share for Humana which is a premium of 23 percent. Between the cash and stocks payout the deal is estimated to be an impressive $37 billion total. So far this deal that is in the making has proven to be extremely lucrative for both parties. Aetna saw their shares jump 4.3 percent, bringing their shares to a record high of $133.05 per share. Meanwhile, Humana saw a 6.5 percent increase in their shares bringing them to $196.21 per share. While shareholders are excited about the merge some leading medical groups are very concerned. According to Medscape there are some concerns about the third and fourth largest US insurance companies merging. Medical groups fear that this merge has the potential to limit choices for patients and stop doctors from joining certain insurance networks which would force physicians to lower their fees. This merge overall looks like it will make healthcare more affordable for consumers and potentially place the hardship on physicians.

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