Why Citi is now buying the company that helps you shop your health insurance coverage
Citi Health is buying a medical technology startup that helps people shop their health insurance.
The transaction, first reported by the Wall Street Journal, would provide Citi with a new partner to help it provide “insurance and risk management” services to healthcare companies.
Citi would buy Citi Healthcare from Blue Shield, which has been an acquisition target for the firm since 2014.
Blue Shield is a unit of UnitedHealth Group Inc. That deal is still under review by the Federal Trade Commission.
Blue Cross and Blue Shield plans have been trying to acquire Citi.
The companies announced a merger in April that would create the world’s largest health insurer.
Cigna Inc., a unit that had been looking for a buyer for several years, was not part of the transaction, the Journal reported.
Blue Health has said it has been focused on getting its core business in line with its growth, which includes more than 100 million customers.
CITIC Capital Partners, the fund that invested in Blue Shield last year, is the same investment firm that is helping Blue Cross, Blue Shield and UnitedHealth buy Blue Shield.
The deal comes as Citi looks to expand its health insurance business, which it bought in 2018.
Citalip Inc. and CitiHealth Partners are the companies that have already been linked to the acquisition of Anthem Blue Cross Blue Shield of California Inc. The merger would give Citi the power to acquire companies in addition to those it already owns, Citalico said in a statement.
The announcement is the latest in a series of Citi moves to bolster its healthcare business.
In March, the bank launched Citi Care, a program that will give consumers access to financial advisers through a mobile app.
In May, Citi bought the medical technology company CriMed, which was valued at $20 billion.
The new deal would be Citi’s third such acquisition.
CIB and its Health Insurance Partners group are focused on offering the same level of financial assistance to millions of customers, and it also offers the same quality, affordability and quality of care, CIB CEO David Cremone said in February.
In July, CibCe, a Citi subsidiary, bought a medical device startup called the Medical-to-Product (MTP) platform, which provides medical equipment to healthcare organizations.
In August, Cineworld announced it had acquired a medical analytics company called iSpy.
Cinworld has been looking to buy Cintech since last year and has made other deals in recent months.