LOUISVILLE, Ky. (WDRB) -- Cigna no longer plans to buy Humana after the two companies failed to agree on a price, reported by the Wall Street Journal.
The merger would have created a $140 billion giant in the health insurance industry. The Wall Street journal reported Cigna will instead focus on a smaller acquisition.
Cigna announced its planning an additional $10 billion stock buybacks, bringing its total to $11.3 billion.
Last month, Humana Inc. talked with Connecticut-based rival health insurer Cigna Group about a combination. The potential deal came nearly seven years after Humana’s aborted sale to rival Aetna.
Humana specializes in Medicare Advantage, the fastest growing area of health insurance, while Cigna is stronger in commercial insurance and only a minor player in Medicare.
Humana, which was founded by Louisvillians David Jones Sr. and Wendell Cherry in 1961, is by far the largest corporation based in Kentucky.
About 10,000 of the company’s 63,000 employees are based in the Louisville area, the company has said.
Even as an independent company, Humana’s connection to Louisville has weakened in recent years, as WDRB documented in 2022. The company has greatly reduced its office footprint in downtown Louisville while establishing an executive office near Washington, D.C.
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- Pandemic strains Humana’s connection to Louisville
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