Cigna Merger Case Study

Employers are more concerned about the health insurance mergers
The regulators of the national and state are analyzing the state of the health insurance merges that are kept pending are expecting the officials to take action against it. The fear of most of the employers in the industry is that the deduced competition among the health insurance distributors results in the increase in their health rates. Acquisition of Cigna Corporation by Anthem for fifty three billion dollars is quite problematic because of the disputes faced by Cigna and both the providers deal with self insured employers where they provide the medical expense for their employees and simply outsource the care management function, provider networking and the claim processing. This contract relationship between the insurance companies and the self insured employers is called the ASO (Administrative services only). And Aetna’s thirty seven billion acquisition of Humana has nothing to do with the employer coverage but has a lot to do with Medicare advantage.
In general the employers wish to provide their own service center for their employees, whereas the merged plans can close those websites to cut the costs and avoid duplication. A survey on the deal between Anthem and Cigna was conducted by the two banks, JP Morgan Securities and Leerink Partners and the result of the survey was a negative score. Around 30% of the employers of JP Morgan did not agree with the deal and believed that it might increase the fees of ASO. The main concern of all the employers is that the quality and value of the Medicare should not