Four major health insurance players — Aetna, Anthem, Cigna and Humana — have collectively spent more than $400 million on legal and banking services, according to Business Insurance.
Here are five points:
1. This figure covers expenses dating from last summer when they announced the deals through the end of March 31.
2. In July 2015, Aetna pledged to purchase Humana in a $37 billion deal to improve its Medicare Advantage business. Anthem and Cigna also finalized their $53 billion merger last summer.
3. To complete the acquisition, Anthem has spent nearly $139 million after taxes on financial consulting, legal fees and bridge-loan financing costs. Similarly, Aetna spent at least $119 million after taxes to prepare for its Humana purchase.
4. Cigna paid lawyers and bankers $93 million and Humana paid lawyers and bakers $52 million, both after taxes. Since the deals were announced last summer, the two insurers have paid nearly $403 million in total in acquisition-related costs.
5. If the federal government does not approve the mergers, Aetna would pay Humana $1 billion, and Anthem would pay Cigna $1.85 billion.
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