Aetna to acquire Coventry in $5.7 billion deal
By Gregg Blesch
Aetna plans to buy Coventry Health Care for $5.7 billion in a cash and stock deal that will expand the company’s reach in Medicaid and Medicare.
The deal is the latest big play by a national insurer to get a bigger footprint in Medicaid as the programs are poised to grow dramatically under the Patient Protection and Affordable Care Act.
The transaction is valued at $7.3 billion including assumption of Coventry’s debt, Aetna said in a news release.
Coventry covers about 4 million members in medical plans and 1.5 million in Medicare Part D prescription drug plans, according to the release.