Roulston Healthcare Partner Randy Vogenberg on Aetna’s Acquisition of Coventry Health Care

August 23, 2012

This week Aetna announced that they have acquired Coventry Health Care for $5.7 billion in cash and stock. Aetna is paying a 20 percent premium and the acquisition will make them one of the largest providers of government-financed healthcare. This move comes after several other highly visible acquisitions by healthcare insurers adding Medicare and Medicaid insurance providers. WellPoint recently agreed to buy Amerigroup in a deal that will make the combined firm the largest private Medicaid company by membership and last year Cigna purchased HealthSpring to increase their Medicare exposure. Randy Vogenberg believes, “The Aetna acquisition was clearly a play due to health care reform market trends being anticipated post 2014.  Since it will take 12-24 months to digest Coventry into Aetna operations, the timing makes sense to effectively spread their mix of business risk sooner than later post SCOTUS decision and most likely scenarios around results from the Congressional and Presidential election cycle in 2012.”


Randy Vogenberg is principal at the Institute for Integrated Healthcare which offers health care and employer based benefits strategic consulting, value based benefit plans and design, pharmaceutical, diagnostic & device industry training, advising on managed customer linkages, and health policy and applied economic issues analyses for benefit design solution opportunities in the health care marketplace. He also principal of Bentelligence which provides a 360 degree view of benefits advisors, health plans and employer plan sponsors. It is a web based market intelligence tool and expert support for all stakeholders in healthcare.

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