After seeing many of its competitors grow through acquisition in 2011 and 2012, Aetna has pulled off the biggest deal of them all, agreeing to purchase Coventry Health Care for $7.3 billion. This is the largest acquisition by any health insurer in the past five years, according to Bloomberg Businessweek.
The deal will add more than 5 million members to Aetna’s membership, including 253,000 Medicare Advantage and 1.5 million Part D enrollees. The transaction still needs to be approved by Coventry shareholders, antitrust regulators and state departments of insurance. The deal is expected to close by mid-2013.
Early in 2012, we wrote about how acquisitions were shaking up the Medicare Advantage market. Out advice now is the same as it was then: Run with the Best. The large, national carriers continue to swallow up the smaller ones, which is why SMS has chosen to align itself with the major players. See our carriers here.