The merger and consolidation process continues. Coventry Healthcare is acquiring two small health plans in the midwest and another chunk of the Federal Employee Health Benefit Plan.

Coventry is a strong player in the mid to smaller employer market, and a major player in the FEHBP (due to their First Health acquisition). This deal, which is valued at about $130 million and is all cash, makes sense for Coventry and Mutual of Omaha. MoO has long played at the periphery of group health, never quite getting to any significant mass.

And the consolidation continues...