Saturday, May 30, 2015
Health Insurer Humana Thinking of Selling
Health Insurance company Humana Inc is thinking of selling the company after it received multiple expressions of takeover interest, this could set off a round of mergers in the health care industry as it grapples with the hurdles and opportunities caused by the federal health-care overhaul.
Companies are pressured to cut costs and look for other ways to gain profit from the potential new customers because of the Affordable Care Act. Experts expected that big health insurance companies will merge to give them more opportunities to compete.
Humana is headquartered in Louisville, Kentucky. Majority of its income is from its business administering the private version of the federal Medicare program. The company prized because of its powerful Medicare franchise, which is on the uptrend as baby boomers age into eligibility and opt for these plans, known as Medicare Advantage.