The health insurer–the fifth largest in the U.S.–agreed last year to be acquired by its rival Anthem for $48.4 billion. The move should give the combined company greater scale and help it cut costs, something that is sorely needed, particularly now as the Affordable Care Act has eaten into profits across the industry. While Cigna, like its peers, has had to deal with high medical expenses from its newly insured customers since the health care law went into effect, the impact on the company has been minimal: Cigna’s individual health plans, which were sold on ObamaCare exchanges in eight states in 2015, only represent 1% of its total medical insurance company’s customers. Although the company’s CEO said late last year that it hasn’t made any money on its ACA business so far, Cigna’s profits only declined very slightly in 2015, and its revenues rose 8.5%. It is still waiting on U.S. regulators to approve its deal with Anthem, and it is unclear how long that will take, given increased federal scrutiny of M&A.
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