There is much anticipation on Humana Inc.’s (NYSE: HUM) upcoming sale, set for the upcoming week. According to the New York Times Company (NYSE: NYT), Humana is one out of five top health insurance companies. The health insurance segment all are looking forward to cutting back on costs and aiming to achieve this through company consolidation, Humana being one of them. According to the New York Times, with all of the recent Supreme Court decisions and rulings, Humana’s price has gained momentum. The company has supported the court’s direction regarding the tax subsidies to assist poor and middle-class U.S. citizens to purchase insurance.
In efforts to reduce costs and consolidate with another health insurance company, Humana has taken a direction to sell itself as the next week’s decision approaches. Some of the leading companies that have shown interest in purchasing Humana are top companies like, Aetna Inc. (NYSE: AET) and Cigna Corporation (NYSE: CI). Both Aetna and Cigna although both strong competitors of Humana, they also have been in the works of consolidating takeovers. Although Humana is a top company in the health insurance segment, as well as, realized better than expected revenue, it has not met investor expectations. Humana is considered one of the cheaper targets at a market value of at least $27 billion. The sale of the company will boost its revenue and cut its costs significantly, allowing the company to meet the expectations required. If these mergers become too popular amongst the health insurance segment looking to consolidate, citizens should also look out for how these events affect the prices that they may pay for health insurance coverage.