Some of the country's largest health insurers have been scooping up several different Medicare and Medicaid health plans over the past several months, and WellPoint CFO Wayne DeVeydt said it is a trend that should continue to rise, according to a Reuters report.
Earlier this week, Cigna bought HealthSpring, a Medicare Advantage HMO, for $3.8 billion, and WellPoint bought CareMore Health Group, also a Medicare Advantage health plan, in August.
Mr. DeVeydt thinks the merger and acquisition market for senior plans in particular is enticing to health insurers because of the upcoming wave of baby boomers. "If I had only $100 to spend, and three assets came up and they all had equal value, my bias would be toward a Medicare company right now because I see the boomers aging in, and it's where the population is going," Mr. DeVeydt said in the report.
Humana to Buy Second Medicare Advantage HMO in Month
Cigna to Purchase HealthSpring for $3.8B
Earlier this week, Cigna bought HealthSpring, a Medicare Advantage HMO, for $3.8 billion, and WellPoint bought CareMore Health Group, also a Medicare Advantage health plan, in August.
Mr. DeVeydt thinks the merger and acquisition market for senior plans in particular is enticing to health insurers because of the upcoming wave of baby boomers. "If I had only $100 to spend, and three assets came up and they all had equal value, my bias would be toward a Medicare company right now because I see the boomers aging in, and it's where the population is going," Mr. DeVeydt said in the report.
Related Articles on Health Insurer Transactions:
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Cigna to Purchase HealthSpring for $3.8B