There have been whispers of Humana possibly being acquired by a competing health insurer, and now people familiar with the matter have confirmed Humana has engaged in preliminary discussions with at least two major payers, according to The Wall Street Journal.
Here are three things to know about Humana's possible takeover.
1. Humana is exploring a possible sale of the company after Cigna approached the health insurer about a potential deal, according to a Bloomberg report. Along with Cigna, Aetna has also shown interest in taking over Humana, according to The Wall Street Journal.
2. Major insurers are interested in acquiring Humana due to the bulk of the company's revenue coming from administering Medicare Advantage plans, which is an area other insurers are looking to expand.
3. Goldman Sachs Group is advising Humana on the possible sale.
More articles on payer issues:
Payers aim to hike premiums: 3 things to know
Anthem poised for 'transformative' acquisition, CFO says
Aetna, Cigna, Anthem and Humana's latest financial results