Athem Plans to Aquire Cigna

"Anthem (ANTM), a Blue Cross and Blue Shield insurer, said it would buy all of Cigna's (CI)shares in a cash and stock transaction," according to a CNN Money post. "The deal is expected to close in the second half of 2016, if it passes state regulatory approvals and other requirements. The merged insurer would cover 53 million members." Read more.

WellPoint Takes Up New Moniker: Anthem

“WellPoint Inc. (WLP), the second-largest health insurer in the U.S., plans to change its name to Anthem Inc., the brand under which it sells most of its coverage,” according to Bloomberg News. “WellPoint and other large health insurers find themselves increasingly marketing directly to consumers, as Obamacare requires most uninsured Americans to obtain coverage and employers thrust more responsibility for costs on their workers. The company sells plans in 14 of the health-care law’s new insurance exchanges, in most cases under its Anthem brand.” Read more.

WellPoint Wants to Use 1-800 Contacts as a Starting Point

"WellPoint, [the parent of Anthem] and based in Indianapolis, said Monday that the eyewear company will help diversify its revenue sources with a high-margin business," reports Business Week. "The insurer typically generates an after-tax profit margin of around 4 percent. 1-800 Contacts can generate margins in the double-digit range, said Ken Goulet, WellPoint's president of commercial and specialty companies....1-800 Contacts currently has about 3.3 million customers. WellPoint Chairwoman and CEO Angela Braly said in a statement that the business comes with a significant growth opportunity because there are more than 38 million people wearing eye contact lenses and more than 140 million people wearing eye glasses in the United States." Read more.