Aetna to Acquire Coventry Health Care

Source: Wall Street Journal

Health-care giant Aetna Inc. said Monday it has struck a deal to buy Coventry Health Care Inc. for $5.7 billion in cash and stock, a move that will make Aetna one of the largest providers of government-financed health care.

Aetna's deal for Coventry follows on the heels of other health-care insurers bulking up their offerings by adding Medicare and Medicaid insurance providers in light of the federal health-care law that aims to provide affordable coverage for Americans.

Earlier this year, WellPoint Inc. agreed to buy Amerigroup Corp., a Medicaid-focused coverage provider, for $4.46 billion, a deal that will make the combined company the largest private Medicaid company by membership.

Last year, Cigna Corp. agreed to buy HealthSpring for $3.8 billion to build up its Medicare business.

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