Anthem Inc said on Friday it would buy Cigna Corp for about $54.2 billion, a deal that would create the largest US health insurer by membership and accelerate the consolidation of an industry from five national players to three. The proposed acquisition - the biggest ever in the health insurance industry - comes three weeks after Aetna Inc agreed to buy Humana Inc for $37 billion.
Health insurers are finding it tougher to raise prices following the roll-out of President Barack Obama's healthcare law, while grappling with soaring costs for a growing list of innovative new medications such as some new cancer drugs that cost $100,000 annually for patients. State insurance regulators and federal antitrust authorities are expected to aggressively scrutinize how both of the proposed health insurer acquisitions will affect competition for Medicare and individual and commercial insurance.
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