Aetna announces plans to buy CoventryAetna, one of the nation's largest health insurers, recently announced plans to purchase a leading provider of Medicaid and Medicare coverage.

Aetna is planning to acquire Coventry Health Care for $5.7 billion, improving its Medicaid business a few months before million of people are expected to benefit from President Barack Obama's healthcare reform.

The acquisition by Aetna will also allow the company to boost its federally-funded Medicare program, which covers those over the age of 65 and the disabled.

This is the second instance where a large insurance company is acquiring a smaller company that was focused on government coverage, following WellPoint Inc. announcing a $4.46 billion deal to buy Amerigroup Corporation last month.

According to Bloomberg, more acquisitions are likely as a result of the reforms in healthcare. Aetna's officials also announced that its recent acquisition will help acquire new business in a plethora of ways. The overhaul's coverage expansion begins in 2014, which is six months after the deal is expected to be closed.

The FDA also recently approved a drug called Pulmotil and Rumensin to be used on animals. Supply chains across the world might benefit from the approval of the drug, which is one of the most proven and widely used feed additives in the industry.
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