(MENAFN) Aetna will spend about USD35 billion to buy rival Humana and become the latest health insurer bulking up on government business as the industry adjusts to the federal health care overhaul, Arab News reported.
The proposed cash-and-stock deal would make Aetna a sizeable player in the rapidly growing Medicare Advantage business, which offers privately run versions of the federally funded health care program.
The combination also would bolster Aetna's presence in the state-and federally funded Medicaid program and Tricare coverage for military personnel and their families. Counting debt, the deal value totals about USD37 billion.
The deal comes two years after Aetna completed another push into government business with the USD6.9 billion acquisition of Coventry Health Care, which administers Medicaid coverage and offers Medicare Advantage plans.
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