Here we go again with more subsidiaries and buy outs and 
this time Aetna is going for the Medicaid and Medicare groups as well with this purchase. A couple years ago Coventry purchased Mercy Health Plans, so we have some additional “daily chains” developing here with insurer subsidiaries. We just had WellPoint buy Amerigroup so I’m sure there’s more to come.
Coventry Health Care Acquires Mercy Health Plans – Part of the Catholic Healthcare System With Focus on Increasing Shareholder Value
This is another large purchase but in case things go crazy Aetna has their reinsurance deal in the Cayman Islands, set up by Goldman Sachs.
Aetna Takes Out Reinsurance Deal In The Cayman Islands- $150 Million to Kick When Medical Loss Ratio Hits 104%
Last year Aetna also purchased this company which was the largest independent 3rd party administrator for self funded plans. BD
Aetna Acquires Prodigy Health Group–Largest Independent 3rd party Administrator for Self Funded Health Plans–Subsidiary Watch
Health-care giant Aetna Inc. AET -0.34% has struck a deal to buy Coventry Health Care Inc. CVH +0.66% for $5.7 billion in cash and stock, a move that will make Aetna one of the largest providers of government-financed health care, people familiar with the matter said.
Aetna, based in Hartford, Conn., is paying $42.08 a share for Coventry, which is a 20.4% premium to Coventry's shares as of Friday's close, according to the people. The mix is 65% cash and 35% stock, the people said. The boards of both companies have approved the deal, which is expected to be announced on Monday, they added.
Aetna, known more for commercial health insurance, has been interested in expanding government-based health plans—Medicare for the elderly and Medicaid for the poor—that are growing as baby boomers and states look for help managing Medicaid costs.
http://online.wsj.com/article/SB10000872396390443989204577600102963766594.html
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