NEW YORK (TheStreet) -- Humana (HUM) shares closed trading down 1.33% to $192.90 on heavy volume Monday following reports that the Department of Justice would keep a close eye on any potential mergers in the healthcare sector, according to the Wall Street Journal.
Aetna (AET) made an official bid for Humana last week, though terms of the deal were not disclosed, according to Bloomberg sources. Humana has also received a merger offer from Cigna (CI) but its prefers Aetna, sources say.
Analysts have said that the consolidation of the industry is an unintended consequence of the Affordable Care Act, which won an important Supreme Court decision on Friday.
The Court ruled that the federal government can continue issuing subsidies to Americans through the Affordable Care Act, also known as Obamacare.
A senior DOJ official told the Journal that many of the publicized potential mergers might raise antitrust concerns saying that all companies involved in merger talks should do careful anti-trust risk-assessments.
The official added that if there were to be a wave of mergers in a short period of time that the acquisitions would be looked at collectively.
Insight from TheStreet Research Team
Jim Cramer, portfolio manager of the Action Alerts PLUS charitable trust, recently spoke about the consolidation of the health insurance industry in a Real Money Pro blog post. Here is what Cramer had to say:
I am going to use this respite day to dream dreams of takeovers. Why? Because when I see every single health maintenance company, Cigna, Aetna , UnitedHealth (UNH), Anthem ( ANTM) and Humana in talks with each other, it seems logical to bless pretty much anything happening in the merger arena.
-Jim Cramer, ' Google Should Buy Twitter and 9 Other Dream Mergers', 6/16/2015
Separately, TheStreet Ratings team rates HUMANA INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation: