Aetna’s Bid To Buy Humana Driven By Market Forces
The plan highlights the company's efforts to exploit business opportunities related to the expansion of coverage under the Affordable Care Act and the rush of baby boomers to Medicare Advantage plans.
Intensified Price Competition Driving Aetna-Humana Deal
Insurer Humana is no stranger to transformation since its founding in 1961. But the company's proposed deal to be acquired by rival Aetna is more likely driven by powerful market forces rather than by the need for another makeover. Louisville-based Humana has morphed in the last half-century from a nursing home operator to hospital system to one of the largest Medicare managed-care companies. It almost merged with United Healthcare Corp. in 1998 but ended up walking away from that deal. (Evans, 7/7)