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The American health insurance market might soon become even smaller. Anthem, one of the country’s biggest health insurers, is closing in on a deal to buy Cigna after slightly sweetening its previous takeover offer, people briefed on the matter said on Wednesday. (de la Merced, 7/22)

Shares of Cigna Corp. soared late Wednesday on a report that rival Anthem Inc. was nearing a deal for the health insurer after a months-long pursuit. Cigna's stock shot up 6% during extended trading after the Wall Street Journal reported that a merger could be announced as early as Thursday. (Terhune, 7/22)

Anthem Inc. is nearing a deal to buy Cigna Corp. for more than $48 billion in a transaction that along with a previously proposed combination of rivals would shrink the five largest U.S. health insurers to just three. Anthem, based in Indianapolis, is expected to pay about $188 a share for Cigna, of Bloomfield, Conn., according to people familiar with the matter. A deal between the two companies could be announced as soon as Thursday afternoon, one of the people said. The agreement hasn’t been signed, and it is possible that the timing could be delayed or deal terms changed. (Mattioli, Hoffman and Wilde Mathews, 7/22)

Health insurers have been in a race to consolidate, arguing that being larger would help them negotiate better prices with doctors and hospitals as well as cut administrative costs following President Barack Obama's signature healthcare law that was passed in 2010. Many healthcare providers are concerned, however, that further consolidation will decrease competition in the insurance industry. (Roumeliotis, 7/22)

A merged company would serve 53 million people and is part of a dramatic, long-predicted reshaping of the health insurance landscape as a result of the Affordable Care Act. UnitedHealthcare has 45 million members, and Humana and Aetna announced they would merge in July, creating a company serving 33 million people. (Johnson, 7/22)