If the Department of Justice successfully blocks the Aetna/Humana and Anthem/Cigna deals, the payers may likely acquire smaller payers, according to Insurance Journal.
Here are five things to know:
1. The major payers may purchase small payers like Centene, Molina or WellCare Health Plans as these deals will likely not draw fierce regulatory concerns.
2. Small mergers may not increase payers' earnings immediately, but such acquisitions may bolster the leading payers' foothold in growing markets such as Medicaid health plans.
3. Aetna purchased Simply Healthcare Holdings, a Florida-based management care company government insurance program, and the payer has continually expressed interest in acquiring more Medicare and Medicaid members.
4. The payers may also consider acquiring Magellan Health, whose members are comprised of a niche group of individuals. A Leerink Partners equities analyst said Magellan Health may help payers in their deals on specialty products, which is vital as escalating specialty drug prices are under intense scrutiny.
5. Aetna, Cigna, Magellan, Anthem, Molina, Humana and WellCare did not comment.
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