Earlier this week, Cigna bought HealthSpring, a Medicare Advantage HMO, for $3.8 billion, and WellPoint bought CareMore Health Group, also a Medicare Advantage health plan, in August.
Mr. DeVeydt thinks the merger and acquisition market for senior plans in particular is enticing to health insurers because of the upcoming wave of baby boomers. “If I had only $100 to spend, and three assets came up and they all had equal value, my bias would be toward a Medicare company right now because I see the boomers aging in, and it’s where the population is going,” Mr. DeVeydt said in the report.
Related Articles on Health Insurer Transactions:
New York’s Lutheran Medical Center Sells Medicaid HMO for $85M
Humana to Buy Second Medicare Advantage HMO in Month
Cigna to Purchase HealthSpring for $3.8B
