LOUISVILLE, Ky. — The Cigna group announced on Monday they would no longer be pursuing a merger with their Louisville-based competitor Humana, according to a press release.
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.
According to the release, Cigna plans to have meeting with investors and analysts over the next several weeks.
"Additionally, in light of recent and persistent speculation, The Cigna Group expects to communicate that the company is not pursuing a combination with Humana Inc.," The release said. "The Cigna Group remains committed to its established M&A criteria and would only consider acquisitions that are strategically aligned, financially attractive, and have a high probability to close."
Even though Human has seen some ups and downs, the Louisville community isn't worried about it's place in the city.
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."
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