Connect with us

Health

Aetna to Buy Humana as Health Insurer Landscape Shifts

Published

on

In this Tuesday, Aug. 19, 2014, file photo, a sign for Aetna Inc., sits atop a building at the company headquarters in in Hartford, Conn. Health insurer Aetna Inc. has made a deal to buy competitor Humana Inc. in a $37 billion deal the companies say would create the second-largest managed care company, it was announced Friday, July 3, 2014. (AP Photo/Jessica Hill, File)

In this Tuesday, Aug. 19, 2014, file photo, a sign for Aetna Inc., sits atop a building at the company headquarters in in Hartford, Conn. Health insurer Aetna Inc. has made a deal to buy competitor Humana Inc. in a $37 billion deal the companies say would create the second-largest managed care company, it was announced Friday, July 3, 2014. (AP Photo/Jessica Hill, File)

TOM MURPHY

Aetna aims to spend about $35 billion to buy rival Humana and become the latest health insurer bulking up on government business as the industry adjusts to the federal health care overhaul.

The proposed cash-and-stock deal, announced early Friday, would make Aetna a sizeable player in the rapidly growing Medicare Advantage business, which offers privately run versions of the federally funded health care program for the elderly and some people with disabilities.

The combination also would bolster Aetna’s presence in the state- and federally funded Medicaid program and Tricare coverage for military personnel and their families.

Health insurers are eager to do more business with government payers due in part to a Medicaid expansion fostered by the health care overhaul and Medicare Advantage’s surging enrollment. The overhaul is expanding Medicaid coverage in several states as it seeks to provide health coverage for millions of uninsured people.

Meanwhile, total enrollment in Medicare Advantage plans has tripled over the past decade to about 16.8 million people and is expected to keep growing as more baby boomers become eligible for the plans. Aetna’s acquisition of Humana would make it the largest provider of Medicare Advantage coverage, with 4.4 million members, a figure that could change depending on regulatory review.

“Government markets are the most rapidly growing aspect of the system,” said Dan Mendelson, CEO of the market research firm Avalere Health.

Hartford, Conn.-based Aetna announced its deal a day after the Medicaid coverage provider Centene Corp. said it would spend $6.3 billion to buy fellow insurer Health Net. That deal would help Centene expand in the nation’s biggest Medicaid market, California, and give it a Medicare presence in several western states.

In addition to these deals, the Blue Cross-Blue Shield carrier Anthem went public late last month with an offer of more than $47 billion for another insurer, Cigna.

Health insurers see more advantages to these big combinations than a chance to build their government portfolios.

Major acquisitions can offer an infusion of new business at time when growth has slowed in the biggest part of their business, employer-sponsored health coverage. Plus more employers are opting to pay their own insurance claims and hire insurers to administer the coverage. That’s a less lucrative line of work for managed care companies.

Big deals also allow companies to quickly diversify their products and cover more territory. They also can yield savings when the companies combine back-office functions and cut overlapping jobs.

Both Aetna and Anthem also have cited the potential to improve their technology as a major reason behind their deals. Insurers are working to develop more apps and other tools that customers can use to shop for health care, since plans are exposing those customers to bigger medical bills through high deductibles and other insurance expenses.

They also are using technology more to help monitor and improve patient care. The overhaul is accelerating a push in the industry to reimburse doctors and hospitals more based on the quality of care they provide instead of just shelling out a certain amount for each procedure performed.

“Any time an industry is changing … it requires investments to sort of successfully make that change,” said Shawn Guertin, Aetna’s chief financial officer.

The impact these big acquisitions have on consumers can be murky and likely won’t be felt for at least a year, because insurers have already finalized most of their plans for coverage that starts in January. A combination may lead to fewer choices and some price changes for consumers, depending on where they live and who already is in their market.

Aetna’s purchase price for Humana includes a combination of $125 in cash and $105.11 in Aetna shares for each Humana share. The total of about $230 per share, which is based on the closing price of Aetna’s stock Thursday, represents a premium of 29 percent to Humana’s trading price in late May, before The Wall Street Journal reported that it was an acquisition target.

The deal’s total value amounts to about $37 billion counting debt.

The combined company would be based in Hartford, Conn., led by Aetna Chairman and CEO Mark Bertolini and cover more than 33 million people. Only UnitedHealth Group Inc. and the Blue Cross-Blue Shield carrier Anthem Inc. cover more. A combined Aetna-Humana would be the second-largest insurer by revenue.

The deal is expected to close in the second half of next year.

Shares of Aetna and Humana closed at $125.51 and $187.50, respectively on Thursday. Markets were closed Friday for the July 4th holiday.

The shares of both companies, like several other insurers, have soared to all-time-high prices this year.

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Commentary

NPRC Elder Justice Symposium Invites Community to Join Effort to Protect Alameda County Elders

“Two of our most vulnerable populations are elders and the disabled, and many times that combination resides in one individual,” said Tanya Dennis, lead facilitator of NPRC. “At our symposium, NPRC will bring decision makers and elders together in one space for a day to develop strategy and policy to protect and empower.”

Published

on

The National Probate Reform Coalition (NPRC) will host an Elder Justice Symposium on Friday, Sept. 25, from 9 a.m. to 5 p.m. at Oakland City Hall, bringing elders, families, advocates, policymakers and community leaders together to address elder abuse, financial exploitation and problems within probate and conservatorship systems.

The symposium is designed to inform and empower the community while developing strategies and policies to better protect Alameda County’s vulnerable elders and disabled residents.

“Two of our most vulnerable populations are elders and the disabled, and many times that combination resides in one individual,” said Tanya Dennis, lead facilitator of NPRC. “At our symposium, NPRC will bring decision makers and elders together in one space for a day to develop strategy and policy to protect and empower.”

Dennis said NPRC has drafted proposed legislation intended to make conservatorship a true last resort by adding safeguards before and after a petition is filed. Proposals include mandatory private mediation before entering probate and placement of an ombudsman in probate proceedings to advocate for the rights and interests of prospective or current conservatees.

The coalition also wants stronger protections for elders’ estates and assets, arguing that money accumulated over a lifetime should be preserved for elders, families and intended beneficiaries rather than unnecessarily depleted by court-related expenses.

NPRC meets monthly through Zoom and has expanded into a national coalition because elder abuse, financial exploitation and guardianship and conservatorship concerns extend well beyond Alameda County.

“Members share horror stories of being isolated from their parents and children, many times physically abused and overmedicated; seeing estates drained for court costs, and assets that parents spent decades saving to leave a legacy depleted instead and going to strangers,” said Venus Gist, an NPRC co-facilitator and former victim of the probate system. Gist said she spent more than $80,000 trying to protect her parents’ estate.

“Eighty thousand dollars is nothing compared to the people in our group losing millions and having to sell their businesses and homes to pay court fees,” she said.

The symposium will also examine forms of elder exploitation including telephone scams, bank fraud, identity theft, family financial abuse and exploitation by trusted individuals. Participants will learn to recognize warning signs involving caregivers, financial professionals, health and social service workers, attorneys and guardians.

NPRC is seeking a California lawmaker willing to champion legislation that strengthens elder protections and increases accountability in the conservatorship process.

The symposium follows Supervisor Nate Miley’s 23rd Annual Healthy Living Festival on Thursday, Sept. 24, at the Oakland Zoo. The free event for adults 55 and older will feature health screenings, vaccinations, nearly 100 community resource booths, lunch, entertainment and complimentary zoo admission for eligible attendees.

Dennis said the two events offer a comprehensive two-day focus on elder well-being.

“The health fair will cover the physical care of our elders, and the next day NPRC’s symposium will cover the mental and social health,” Dennis said. “Together, we are offering a comprehensive two days of care for Alameda County elders.”

Both events are free, and advance registration is recommended because space is limited. Community members, elders, families, advocates and public officials are encouraged to participate. Breakfast and lunch will be served at both events.

For registration: Sign-up is required via Supervisor Nate Miley’s Eventbrite page NPRC registration is https://www.eventbrite.com/e/elder-justice-symposium-tickets-1998385423597?aff=oddtdtcreator



Continue Reading

Business

Returning to Its Roots, the Oakland Black-Eyed Pea Festival Partners with the Freedom Farmers Market Sept. 12

POST NEWS GROUP — Freedom Farmers’ Market (FFM) vendors sell produce and promote wellness and nutrition through organic herbs, massage, and other gift items from July through October on the second and fourth Saturdays at a dozen canopies in the last block of Shattuck Avenue, where it merges with Telegraph Avenue.

Published

on

Elaine Smith, executive director of Farms to Grow, Inc., holds T-shirt for Ki’Ara LaFitte, winner of the Freedom Farmers’ Market Watermelon-Eating Contest at the season opening on July 11. Courtesy photo.

By 

The Oakland Black-Eyed Pea Festival (BEPF), a celebration of African American traditional music, food and art, will return to its roots through a partnership with Farms to Grow, Inc., the hosts of the Freedom Farmers’ Market on Sept. 12.

Now in its 11th year, the downsized festival sponsored by Omnira Institute will open with presentations by Wakan Wiya Two-Spirit Drum, a drum invocation for the ancestors by Awon Ohun Omnira, a performance by Andre Thierry of Accordion Soul, and most importantly, fresh black-eyed peas for sale.

Freedom Farmers’ Market (FFM) vendors sell produce and promote wellness and nutrition through organic herbs, massage, and other gift items from July through October on the second and fourth Saturdays at a dozen canopies in the last block of Shattuck Avenue, where it merges with Telegraph Avenue.

Over the years, FFM vendors have appeared at the Black-Eyed Pea Festival and vice versa, so this collaboration is like a family reunion.

Farms to Grow, Inc. Executive Director Elaine Smith said the collaboration with Omnira Institute was an opportunity she couldn’t refuse. “People talk about community and unity for Black people – I always want to be an example of what has to be done,” Smith said. “Anyway that we can partner with our people, we want to do that.”

Charlotte Jackson, a longtime vendor with FFM and the festival, had been known for her jellies, jams and chow-chow through Pots n’ Jars. For the last several years, she hasn’t been able to find a commercial kitchen she can afford, so she began selling vegan soap and skin care products that her son and his partner produce under the name Lather and More.

“It’s been a blessing,” said Jackson, who will tell her customers that although they can order the wares from the website, there’s no such thing as ‘smell-avision.” From her table, she encourages passers-by to take a sniff of the soaps, then directs them to the nearby booths.

Jackson functions as a sort of ‘town crier’ of ‘buying Black,’ never failing to encourage Black people to take their mule or Pontiac or Chevrolet and steer it toward Black businesses like Mandela Market.

Likewise, the Black-Eyed Pea Festival was established to encourage Black entrepreneurship by providing a space for Black creatives to sell their handmade or original designs and products without competing with commercially produced goods.

It also served as a way to both commemorate and invigorate memory of the once-thriving Black community of West/North Oakland before it was divided by highways, BART, and then ravaged by the crack cocaine epidemic.

“For one day, I wanted to invoke the success of that community through the sound of music, the taste of soul food and black-eyed peas and the beauty of our art,” Ravernell said.

Once deciding to follow through on the idea of holding a festival celebrating African American traditions, Ravernell settled on using the black-eyed pea as its symbol because of its pride of place in Black people’s consciousness on New Year’s Day and because the peas were originally cultivated in Africa.

Learning that Fresno farmer Wil Scott, former president of the California African American Farmers Association, grew black-eyed peas as well as other legacy crops that are the foundation of a soul food menu, Ravernell was intent on ensuring Scott’s presence at the first festival in 2014. Whenever he could, and whenever the weather yielded a bountiful crop, Scott would bring his black-eyed peas to the festival, shelled or on the pods.

Originally cultivated in Africa, the black-eyed pea is believed to have been brought to the U.S. hidden in the hair of African captives brought to the Western Hemisphere during the holocaust of the Atlantic Slave Trade.

Known to grow plentifully even in poor soil, the pea was associated with abundance in Africa and later, in the U.S., with good luck.

She also learned that black-eyed peas nourish poor soil, that they are a very good source of nutrition, and that they probably contributed to the longevity of the enslaved.

“I thought the black-eyed pea, its story and its significance for Black people made it a great symbol to represent Black culture,” she said. In spite of everything they endured, Black people emerged from slavery and Jim Crow as masters of making a lot from a little, creating a culture that would be emulated and imitated at home and abroad.

Feeling that many people know only the most recent iterations of Black music – Hip Hop and R&B – she created the festival to promote the music of earlier eras, which reflect the thoughts and feelings of Black people over time.

That’s why the festival highlights straight-ahead jazz, gospel, zydeco and the Second Line of the New Orleans jazz funeral.

“It’s not enough to remember,” Ravernell said. “We need to actively nourish the roots of our culture.”

Continue Reading

Business

NPRC Scores First Advocacy Victory: David Shaw Finally Gets His Wish to ‘Go Home’

POST NEWS GROUP — The National Probate Reform Coalition (NPRC), formed by the Post Newspaper Group in January following years of reporting on alleged abuses within the probate court system, helped Beverly secure the return of her husband, along with the couple’s property and assets.

Published

on

Beverly and David Shaw were separated by a hospital after Beverly took David there to treat his dehydration. The hospital determined Beverly was not caring for David property and placed him under their guardianship. Courtesy photo.

For nearly four years, Beverly Shaw fought to bring her husband home.

She watched as David Shaw moved through three nursing homes, became increasingly sedated and repeatedly expressed his desire to return to his wife. Last week, that finally happened.

The National Probate Reform Coalition (NPRC), formed by the Post Newspaper Group in January following years of reporting on alleged abuses within the probate court system, helped Beverly secure the return of her husband, along with the couple’s property and assets.

For NPRC, the Shaw case represents its first major advocacy victory. For David, it means something much simpler: He finally got to go home.

In a letter to the court, Beverly raised serious concerns about her husband’s care at Riverview at the Park Nursing Home.

She alleged that David was frequently heavily sedated and questioned whether his medications were properly documented. She said an aide told her medications were sometimes administered without proper charting, although she acknowledged she had not independently verified that information.

Shaw also said she was unable to obtain David’s medical records and questioned medications he was receiving despite previous medical instructions following his 2023 stroke.

“I believe David has been subjected to abuse, neglect, and unnecessary chemical restraint,” Shaw wrote.

The allegations are Shaw’s account and have not been independently established. But they raise questions central to NPRC’s mission: Who is watching when a vulnerable person becomes subject to guardianship? Who is accountable when family members say they are ignored? And who makes sure the person under guardianship, not the professionals surrounding them, remains the priority?

“Please let me go home”

Perhaps the most compelling part of Shaw’s case was David’s own voice. Shaw told the court she possesses recordings in which David repeatedly expressed his desire to return home.

After 45 years of marriage and four years apart, Beverly argued that David deserved the opportunity to spend his remaining years at home with his wife, receiving individualized care.

NPRC responded with a “Request for Compassion” letter-writing campaign to Judge Thomas Inman, Associate Circuit judge for Ste. Genevieve County, Missouri. The coalition also helped Shaw pursue appropriate legal filings and engaged with her attorney to press for action.

The court ultimately returned David to Beverly’s custody and restored the couple’s property and assets.

“What we have here is the power of coalition,” said Alee Carrino, an NPRC planning committee member. “We applied pressure from all sides, and it worked.”

The victory comes during NPRC’s eighth month of organizing for probate reform. The coalition advocates for greater judicial and governmental oversight, court ombudsmen, mandatory mediation, transparency in probate billing and stronger protections for elders and disabled people.

The Shaw case sends a powerful message: Guardianship is supposed to protect vulnerable people, not permanently separate them from those who love and care for them.

David Shaw asked to go home. His wife fought to bring him home. NPRC supported her every step of the way, and this time, the system listened.

Continue Reading

Subscribe to receive news and updates from the Oakland Post

* indicates required

CHECK OUT THE LATEST ISSUE OF THE OAKLAND POST

ADVERTISEMENT

WORK FROM HOME

Home-based business with potential monthly income of $10K+ per month. A proven training system and website provided to maximize business effectiveness. Perfect job to earn side and primary income. Contact Lynne for more details: Lynne4npusa@gmail.com 800-334-0540

Facebook

Activists Gerald Smith and Romaine Charite at 14th and Broadway in downtown Oakland near City Hall protest in support of Haitian immigrant rights. Photo by Carla Thomas
Black History9 hours ago

Oakland Protesters Rally to Defend Haitian Immigrants and TPS

Alameda County Supervisor Nikki Fortunato Bas (left) with Community Advisory Councilmember and childcare provider Nancy Harvey. Photo by Carla Thomas.
Community9 hours ago

First 5 Alameda County Celebrates First Year of Measure C’s Implementation

Documentary film, "Seeds for Liberation," highlights the Palestinian struggle and the shared fight for freedom and liberation in the United States and abroad. Graphic courtesy of www.seedsforliberationmovie.com
Commentary9 hours ago

From Palestine to Oakland: Seeds for Liberation Examines Shared Struggles for Freedom

Civil Rights Attorney Ben Crump (left), House Majority Leader Hakeem Jeffries (middle), Rev. Al Sharpton (right) stand at the NABJ conference in Atlanta on Aug. 13 with Elmore and Christine Wonsley, the parents of Nolan Wells, a Black 18-year-old who died July 4th weekend in Mississippi
Black History9 hours ago

NABJ Convention Brings Black Journalists, Civic Leaders Together in Atlanta

California gubernatorial candidate Xavier Becerra. File photo.
Featured9 hours ago

At Sacramento Summit, Becerra Discusses Policy; Uses “Family” Metaphor to Frame Case for National Political Unity

At SpringHill Suites by Marriott Oakland Airport, AASEG President Ray Bobbitt with Loop Capital Vice President Al Dinwiddie, OAACC President Cathy Adams, and Loop Capital President James “Jim” Reynolds, Jr. Photo by Carla Thomas.
Black History10 hours ago

$5 Billion Coliseum Vision Puts Oakland Jobs, Businesses at Center

From left to right: Justice Rashida Adams, Judges Denise Hippach, and Juliet Macaulay. Image courtesy of California Black Media.
Black History10 hours ago

Gov. Newsom Nominates 3 Black Women Judges to Serve on State Courts of Appeal

Black History10 hours ago

Oakland Observes Black August with Block Parties, Film Showings, Workshops

Commentary11 hours ago

NPRC Elder Justice Symposium Invites Community to Join Effort to Protect Alameda County Elders

View of downtown Oakland, California and City Hall. iStock photo.
Community5 days ago

Four Candidates, Including Incumbent Barbara Lee, Qualify for Oakland Mayor’s Race

George Jackson wrote two books: “Soledad Brother,” and “Blood in My Eye” before her was killed in an attempt to escape prison on Aug. 21, 1971.
Black History5 days ago

Oakland Observes Black August with Block Parties, Film Showings, Workshops

Activism5 days ago

Oakland Post: Week of August 12 – 18, 2026

iStock.
Commentary5 days ago

COMMENTARY: Why Local School Tax Measure G1 Will Not Be on the November Ballot

Luis Zambrana, McDermott Costa Insurance; Leo Callejas, California Hispanic Chambers of Commerce (CHCC) Northern Region chairperson; Karen Guzman, Aliza Gallo, board director, Oakland Latino Chamber of Commerce (OLCC); Julian Cañete, president and CEO of CHCC; Sharon Fonseca, OLCC board director. Courtesy photo.
Business5 days ago

California Hispanic Chambers of Commerce Unveils: ‘Powering the Future’ Theme for 47th Annual Statewide Convention

Elaine Smith, executive director of Farms to Grow, Inc., holds T-shirt for Ki’Ara LaFitte, winner of the Freedom Farmers’ Market Watermelon-Eating Contest at the season opening on July 11. Courtesy photo.
Business5 days ago

Returning to Its Roots, the Oakland Black-Eyed Pea Festival Partners with the Freedom Farmers Market Sept. 12

California Secretary of State Shirley N. Weber issued a statement confirming that her office is reviewing claims made by the U.S. Department of Homeland Security regarding the state’s efforts to prevent election fraud. CBM photo by Antonio Ray Harvey.
Featured2 weeks ago

Department of Homeland Security Demands California Secretary of State Shirley N. Weber Scrub Voter Rolls

#NNPA BlackPress3 weeks ago

New Judge Could Decide if Karmelo Anthony Gets a New Trial

Staff and family members of patients at UCSF Benioff Children's Hospital Oakland in Oakland, Calif., hold signs during a rally on Thursday, July 9, 2026. Rally participants protested the relocation of specialized care clinics to the hospital's San Francisco campus. Photo by Kayla Chan/Bay City News.
Business4 weeks ago

Oakland Children’s Hospital Workers and Patients Rally for Pediatric Medical Care

Gov. Gavin Newsom speaks during a July 21 presentation at McClellan Park highlighting California’s investments in advanced firefighting technology and wildfire prevention tools. CBM photo by Antonio Ray Harvey.
Environment2 weeks ago

“The Power to See Threats Sooner”: Gov. Newsom, Safety Officials Showcase California’s Investments in Hi-Tech Wildfire Prevention

Dr. Tonja L. Ringgold, an educator and Life Member of Alpha Kappa Alpha Sorority, Incorporated® (AKA), was installed as North Atlantic Regional Director during the organization’s 72nd Biennial International Convention on July 23 in Las Vegas.
Black History2 weeks ago

Alpha Kappa Alpha Sorority, Inc. Celebrates New North Atlantic Regional Director

iStock.
Business4 weeks ago

Surveillance Pricing Fight: State Senate Debates Bill Banning Retailers from Using AI to Set Prices Based on a Buyer’s Profile

Pastor Michael Wallace of Mt. Zion Missionary Baptist Church (center) and David Kimball, president of the Oakland Stake of the LDS church listen to remarks before volunteers began their work. “We are grateful to partner with these organizations to help care for those in need in our community,” Kimball later told the assembled volunteers. Courtesy photo.
Business4 weeks ago

Mount Zion MBC, Church of Jesus Christ of Latter-day Saints Partner to Bring 29,000 Meals to Alameda County

Justices of the United States Supreme Court. Courtesy of Supreme Court of the United States.
Featured2 weeks ago

California Sen. Padilla Joins Colleagues to Introduce Bill Imposing Term Limits on Supreme Court Justices

First Vice President of Sacramento City Unified School District Taylor Kayatta and family. Courtesy photo.
Community5 days ago

Less Affluent School Districts, Including Sacramento City, Face Threat of State Takeover

iStock.
Business4 weeks ago

Starting This Summer, California Car Buyers Can Get an Instant $3500 Off the Cost of Electric Vehicles

Photo: iStockphoto / NNPA.
Business1 week ago

Car Wash Workers Cope with Lingering Impacts of ICE Raids

#NNPA BlackPress3 weeks ago

COMMENTARY: You Are Already Paying for the AI Boom

#NNPA BlackPress3 weeks ago

California Bill Would Let Abuse Victims Use Trauma as Legal Defense for Violent Crime

Black History3 weeks ago

Fed Court to Decide Landmark First Amendment Case

From left to right: Jesse Arreguín, Gov. Gavin Newsom, Sharon Quirk Silva, Oakland Mayor Barbara Lee, and Janelle Chan. Photo courtesy Sarah Henry.
Business4 weeks ago

Gov. Gavin Newsom Signs Law Streamlining Affordable Housing Rules

Trending

Copyright ©2021 Post News Group, Inc. All Rights Reserved.