It somewhat is starting to look like we are moving towards a “big 3” with large health insurance carriers, with Aetna and Blue Cross right in the running. Goldman Sachs, no doubt will be pleased as again, it’s all about money and not healthcare. Is your 401k money maybe invested here, something to think about. Where’s the Rockefeller inquisition here? Has that been dropped? It certainly doesn’t seem to make much difference of late with Congressional testimonies as big business just keeps on doing whatever and however they want, don’t see anything here about the SEC either and again are we headed towards 3 large companies having control of most of the health insurance in the US? BD
UnitedHealth Group Inc. (UNH) agreed to buy Health Net Inc.'s (HNT) Northeast licensed subsidiaries for as much as $570 million in several payments over two years.
Last week, Health Net saw its credit ratings downgraded after the U.S. Department of Defense's Tricare program said it would award Health Net's multibillion-dollar contract to provide health coverage to military personnel to Aetna Inc. (AET) starting next spring.
Those moves spurred speculation the Health Net would speed up consideration of its options. The health insurer, long the subject of takeover speculation due to various operating difficulties, had been reviewing alternatives for its Northeast and Arizona operations.
Health Net said it will sell its Northeast insurance and HMO units in Connecticut, New York and New Jersey, which have about $450 million in tangible net equity, as well as membership renewal rights for its Life health care business in the Northeast.
At the deal's closing, expected in the next 12 months, UnitedHealthcare, a UnitedHealth Group company, will transfer about $290 million to Health Net. About $160 million more will be distributed to Health Net as the business transitions during the next two years.