WH In a July 24, 2015 post, CNN reports: In another merger of health insurance giants, Anthem has agreed to acquire Cigna in a $54 billion deal. Anthem (ANTM), a Blue Cross and Blue Shield insurer, said it would buy all of Cigna's (CI) shares in a cash and stock transaction. The deal is expected to close in the second half of 2016, if it passes state regulatory approvals and other requirements. The merged insurer would cover 53 million members. The merger would leave only three major players in the insurance industry. WIM The author of the article, Aaron Smith, further states: Some doctors are concerned that the mergers will put too much power in just a handful of insurance companies. The American Medical Association said the mergers will "reduce competition and decrease choice." There are also worries that costs for customers will go up because of less competition. But the health insurers are defending their move. "This will actually improve efficiencies and reduce costs for consumers down the line," said Cigna spokesman Matt Asensio. Editor's Note: Consolidation does typically reduce costs. Whether or not those cost reductions are passed on to the consumer remains to be seen.
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