Cigna and Humana Revive Merger Talks Amid Medicare Challenges

The potential merger could be influenced by the 2024 election and regulatory shifts in Medicare Advantage.

Cigna and Humana have resumed preliminary merger discussions after previous talks stalled over valuation issues.
Humana's financial struggles, partly due to Medicare Advantage cost overruns, have made the company a more viable acquisition target for Cigna.
The outcome of the 2024 U.S. presidential election could significantly impact the merger, especially if regulatory policies shift under a new administration.
Humana's stock has seen a recent uptick, recovering from a significant drop earlier this year, while Cigna's stock has declined amid renewed merger speculation.
Both companies face challenges from reduced Medicare reimbursements and increased medical costs, which have pressured their profits and stock performance.