Health insurers in the news: Week in review July 24-30

The following insurers made headlines this week. They are listed below, beginning with the most recent.

1. Cigna revenue climbs to $9.5B as membership grows
Cigna reported net income of $588 million for the second quarter of fiscal year 2015, up from net income of $573 million for the same period one year ago. The company also reported its revenue increased to $9.5 billion in the second quarter of FY 2015, up 9 percent from $8.7 billion in the same period of last year.

2. Humana revenue grows to $13.7B in Q2 as Aetna merger looms
Humana reported consolidated revenues, including investment income, of $13.7 billion for the second quarter of fiscal year 2015, up 12.4 percent from $12.2 billion in the same period one year ago. The insurer's total premiums and services revenues increased 12.3 percent in the second quarter of FY 2015 to $13.7 billion, up from $12.1 billion in the same period of 2014.

3. Anthem's profit rises 17.5%, revenue beats expectations
Anthem reported a better-than-expected quarterly profit for the second quarter of fiscal year 2015. Its revenue increased to $20.02 billion in the second quarter of FY 2015, up 8.3 percent from the same period of last year.

4. How Big Five insurer mergers could affect market share in 4 states
The "Big Five" health insurers could soon become the "Big Three" if the proposed Anthem-Cigna and Aetna-Humana mergers are granted regulatory approval. Authors of Wells Fargo's Municipal Securities Research report said hospitals in Georgia, Louisiana, New Hampshire and Kansas could experience notable effects on market share post-mergers.

5. What Anthem's Cigna deal means for BCBS
Blue Cross Blue Shield may be feeling apprehensive following Anthem's purchase of Cigna, according to Forbes. The deal is anticipated to impact Blue Cross Blue Shield in multiple ways, including making Anthem a stronger competitor with scale to negotiate better contracts with employers, potential national accounts and other clients.

6. AMA denounces insurance mergers
The American Medical Association issued a statement reporting the negative consequences of large health insurance mergers and calling on federal and state regulators to more closely examine recently proposed mergers. Anthem announced an agreement to buy Cigna for $54.2 billion and Aetna announced it plans to acquire Humana for $37 billion.

7. Humana hit with investor class-action lawsuit over Aetna deal
Louisville, Ky.-based Humana was hit with an investor class-action lawsuit seeking to block the company from being acquired by Hartford, Conn.-based Aetna, according to a Law360 report. Earlier this month, Aetna entered into a definitive agreement to acquire Humana in a deal valued at $37 billion.

8. Anthem strikes deal to buy Cigna for $54.2B
Anthem entered into a definitive agreement to acquire rival health insurer Cigna in a cash and stock transaction valued at $54.2 billion. The deal is expected to close in the second half of 2016.

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