Bloomfield
Connecticut-based healthcare insurer Cigna is in talks to merge with US rival Humana to create a $140bn health insurance giant, reinvigorating a lacklustre acquisition market, says The Wall Street Journal. The deal, expected to be finalised by the end of December, would marry Cigna’s strength in commercial insurance and its pharmacy unit with Humana’s prominent position in Medicare. Competition concerns and high interest rates have discouraged tie-ups in the insurance sector and the US government has indicated that it would scrutinise acquisitions in the healthcare market. Cigna is mulling selling its Medicare Advantage business to assuage regulatory concerns, while Humana said in February it would sell its commercial business to focus on its Medicare unit. The federal health insurance programme, which rewards doctors keeping patients healthy, curtailing spiralling hospital costs, is driving a new spate of deals in the industry, says Lex in the Financial Times. The merger would follow CVS Health’s recent acquisition of home-care provider Signify Health and primary care provider Oak Street Health for $20bn, while