This morning’s big news is the announcement of Anthem’s acquisition of Cigna for cash and Anthem stock.
The total per share consideration equates to approximately $188.00 for each Cigna share based on Anthem’s closing share price on May 28, 2015, valuing the transaction at $54.2 billion on an enterprise basis.
The Wall Street Journal reports this morning that if regulators bless the Anthem – Cigna and Aetna-Humana transactions, United Healthcare would continue to be the revenue leader at $154 billion annually while Aetna and Aetna would enjoy revenues around $115 billion annually. Anthem would be the health plan membership leader, which suggests that Aetna and UHC derive more revenues for businesses outside traditional health insurance – an option that the ACA has encouraged by capping health insurer revenues as Forbes reported earlier this week.
Joseph Swedish, Anthem’s CEO, will be the Board chairman and CEO in the combined company, and David Cordani, Cigna’s CEO, will be the President and Chief Operating Officer. Mr. Cordani informed Cigna customers today that
In the coming months, we are committed to delivering the same high-quality service that you have come to expect from us. Cigna will remain separate and independent until closing, and we will continue on our present, positive path until the government reviews are complete and the combination is approved. We expect the transaction to be completed in the second half of 2016.
Cigna, in contrast to Anthem, Aetna, and Humana, is not an FEHBP carrier but it does participate in the FEHB Program as a medical network provider to several employee organization plans.
In other more mundane news, Govexec informed us that OPM has released a report grading federal agencies on their employee wellness efforts. The grades are based on a CDC survey instrument. According to the OPM report
291 worksites, from 36 different Federal agencies, participated in the WC assessment. The average score across participating worksites was 61.5 percent (176 out of 286 possible points). Individual worksite scores ranged from 28 to a perfect score of 286. On average, agencies scored the highest in addressing vaccine-preventable diseases, occupational health and safety, and tobacco-free living. Agencies have the most room for improvement in the areas of nutrition, lactation support, and organizational supports.
The high-impact wellness strategies that agencies use the most are:
Influenza (flu) vaccinations at the worksite (84 percent)
One or more functioning automated external defibrillator in place (82 percent)
A written policy banning tobacco use at the worksie (79 percent)
A private space (other than a restroom) to express breast milk (77 percent)
Stress management programs (75 percent)
An on-site exercise faciliy (70 percent)
Finally, MedCity News reports that a major telehealth provider American Well is “getting ready to launch telehealth “exchanges,” where patients can search for physicians able to provide immediate online consultations or in-office visits on short notice. Physicians also will be able to make themselves available whenever they have a free time slot. ” Now that could be potentially useful but disruptive technology.