9 payer M&A deals in 2025

Several major payer acquisitions have closed or were announced in the first months of 2025. 

CareSource has closed the acquisition of two insurers, and announced plans to acquire a third. Cigna also completed the sale of its Medicare Advantage business to HCSC. 

Here are nine deals to note: 

1. Blue Cross Blue Shield of Michigan is reportedly working to sell its AF Group subsidiary, the holding company for multiple companies that provide workers’ compensation and other specialty insurance solutions.
2. CareSource closed its acquisition of Commonwealth Care Alliance. Boston-based CCA was facing significant financial challenges, with its reserves falling more than $216 million below solvency thresholds. The plan has around 50,000 members and predominantly serves individuals dually eligible for Medicare and Medicaid.
3. Cigna completed the sale of its Medicare Advantage business to Health Care Service Corp. The sale included The Cigna Group’s MA, Medicare Part D and supplemental benefits businesses, and CareAllies, Cigna’s value-based care management subsidiary.
4. In March, CareSource announced plans to acquire ElderServe Health, a long-term services plan. New York City-based ElderServe Health has more than 20,000 members in Medicaid long-term care programs and Medicare Advantage special needs plans.
5. Elevance Health plans to acquire Granular Insurance Company, a stop-loss insurance subsidiary, from Verily, a sister company of Google.
6. In February, Molina Healthcare closed the acquisition of ConnectiCare, a subsidiary of New York City-based EmblemHealth. Molina paid $350 million for the insurer.
7. Sioux Falls, S.D.-based Sanford Health and Marshfield (Wis.) Clinic Health System officially merged, as of Jan. 2. As part of the merger, each system’s health plan, Sanford Health Plan and Security Health Plan, respectively, will operate under a common management and reporting structure. Tommy Ibrahim, MD, CEO of Sanford Health Plan, will lead both health plans.
8. CareSource completed the acquisition of Common Ground Healthcare Cooperative, one of the last surviving ACA co-op plans. The transaction closed Jan. 1. Common Ground Healthcare Cooperative will operate as an affiliate of CareSource and will continue to focus on the individual market.
9. Elevance Health closed its acquisition of Indianapolis-based Indiana University Health’s health plan Dec. 31. The plan serves 19,000 Medicare Advantage members across 36 counties and 9,600 fully insured commercial members through employers. It will operate as part of Anthem Blue Cross and Blue Shield in Indiana. 

This article was last updated April 24.