NEW YORK — Chubb Insurance, the largest employer health plan in the United States, on Monday said it has reached a $20.4 billion deal to buy insurance from the U.S. government.
The deal, which will be announced on Wednesday, gives the company a larger stake in a national health insurer that is one of the largest private employers in the country.
The deal is the biggest for the nation’s largest employer.
Chubbs plans to use the proceeds to help pay down its $1.8 trillion debt.
The deal comes as the Affordable Care Act is being implemented, and as insurance premiums have risen dramatically under the Trump administration.
The administration has said it will be paying a premium of $2,000 per person next year, up from $1,500 in 2018.
The Chubb deal comes after the company, which has 4,500 employees, was sold in 2018 to the private equity firm Cerberus Capital Management.
The company is based in Wichita, Kansas.
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