Investors were also not entirely surprised that Cigna could consider absorbing Humana, as the Medicare Advantage insurer has long been viewed as an acquisition target. When reports first emerged the Cigna was considering the sale of its MA business, analysts at Stephens predicted that it may look next to a Humana acquisition.
The Stephens analysts echoed Jones in saying that while a legal challenge from the Department of Justice was likely inevitable if a deal were announced, the merger has a chance of surviving that test.
"As we always like to say, there's never a dull moment in MCO-Land," Analyst Scott Fidel and Associate Raj Kumar wrote in an analyst note.
Cigna Doubles Down On Growing Evernorth Health Services | Modern Healthcare