LOUISVILLE, Ky. — Cigna has reportedly resumed talks to merge with their Louisville-based health care rival, Humana.
According to Bloomberg News, the companies held informal discussions about a potential deal.
Cigna had previously tried to merge with Humana in 2023 but called it off in December when the two companies could not come to an agreement on price and other financial terms.
Humana has faced shaky times this year after losing nearly 40% of its value and declining enrollments of its Medicare Advantage program.
They stated a share of its customers currently enrolled in plans rated four stars or higher for 2025 are down to 25% from 94% in 2024.
The insurer also suffered a Medicare ratings drop which could cost them $1.9 billion in 2026.
Medicare Advantage plans are privately run versions of the federal government’s Medicare program mostly for people aged 65 and older. The annual enrollment window for 2025 coverage began on Oct. 15. Shoppers will have until Dec. 7 to settle on coverage for next year.
Cigna’s value is about $94 billion while Humana’s is $32 billion.
Neither company has publicly commented on the potential deal.
Humana employs more than 12,000 in Louisville and is the fifth-largest employer in the city.
Humana's economic impact
Mayor Craig Greenberg said on Tuesday that the company contributes a lot to charities and local businesses.
"That's is my expectation and belief that Humana will continue to grow here in Louisville," Greenberg said. "Continue to be a critically important part of our city for years to come."
As Humana faces some uncertainty, some Louisvillians are not worried about the thought of the company leaving the city.
General manager for Italian restaurant Vincezco's, Kevin Daley, said their business has been thriving since opening around the same time the Humana Tower opened. It's located just a block south of the property.
Daley is not concerned about Humana employees moving farther away from their business.
"It makes perfect economic sense for them," Daley said. "If they have two campuses downtown and they're both 30% occupied to combine them. Leave the crown jewel open to attract somebody that wants to come to Louisville."
In July, the University of Louisville published a report on the economic impact Humana has across the state. The author, UofL College of Business associate professor Thomas Lambert, said the company contributed a total of $14 billion in economic output in Kentucky in 2023. He said a part of it are the amount of people they employ who spend disposable income.
"[Many of Humana's] employees live in Jefferson County," Lambert said. "But that extends into Bullitt, Oldham, Shelby [counties] and then over into southern Indiana as well. So, you've got almost every type of restaurant under the sun being supported by the spending of their employees."
Daley said those employees helped established Vincezco's and he has high hopes a new company will move into the tower and bring new clients. Until then he's confident Humana's long history with local businesses will continue to bring in revenue.
"Everybody want to keep and eye on them and we don't want them to go anywhere else," Daley said. "That's that thing, our job is to keep them here and keep them happy."
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