Cigna, a Bloomfield-based health insurer, is reportedly in merger talks with Humana, based in Kentucky.
The news was first reported by the Wall Street Journal, which says the cash-and-stock deal could be finalized by year end.
The deal, which Reuters says could exceed $60 billion in value, would require government approval and would likely be subject to intense antitrust scrutiny.
For the deal to go through, both insurers would likely need some rationale for how the merger would benefit consumers. But it’s far from a done deal, said attorney Minor Myers, a professor of the University of Connecticut School of Law.
“The Biden administration has been very serious about its antitrust enforcement and scrutiny of mergers,” Myers said. “And this would be the biggest merger of the year and no doubt would attract the attention of the Biden administration.”
Connecticut Attorney General William Tong told Connecticut Public his office is “watching closely amid concerns that major market consolidation could adversely impact consumers in Connecticut.”
Six years ago, a U.S. District Court blocked insurer Aetna from acquiring Humana.
Cigna and Humana are some of the largest health insurance companies in the nation and together had a combined revenue of more than $270 billion in 2022.
Cigna is the largest employer in Bloomfield, Connecticut, with 4,520 employees in 2022, according to the town’s annual financial report.
Connecticut Public's Sujata Srinivasan contributed reporting to this updated story.
