Aetna-Humana Deal Gets Green Light From California’s Managed-Care Regulator
Department of Managed Health Care Director Shelley Rouillard approves Aetna’s $37 billion proposed merger with Humana, despite her past criticism of Aetna’s repeated rate hikes. California’s other insurance regulator, Insurance Commissioner Dave Jones, hasn’t yet announced his decision. The decisions by California's officials could be influential in how federal officials view the merger.
The Associated Press:
Aetna-Humana Merger Gets California Regulator's Approval
A California regulator is approving Aetna Inc.'s proposed acquisition of rival health insurer Humana Inc. Shelley Rouillard, director of the California Department of Managed Health Care, announced her decision Monday. As a condition of the approval, Aetna agreed to limit premium increases in the small group market and to allow greater state oversight of its rates. The company will also have to keep certain decision-making functions in California and must invest in various health initiatives. (6/20)
California Healthline:
California Regulator Signs Off On $37 Billion Aetna-Humana Insurance Merger
California officials don’t have the authority on their own to block the national insurance merger, but their decisions can be influential as the companies try to win antitrust approval from the U.S. Department of Justice. Shelley Rouillard, director of the state Department of Managed Health Care, said she reached an agreement with Aetna that should help keep future rate increases to a minimum and improve the quality of patient care. (Terhune, 6/20)
Bloomberg:
California Clears Aetna-Humana Deal As Anthem Still Under Review
Aetna Inc.’s $37 billion deal to buy Humana Inc. was approved by the California Department of Managed Health Care, which said Monday that it could move forward after the company agreed to invest in the state’s health-care infrastructure. Humana’s stock rose 1.9 percent to $190.74 at 3:07 p.m. New York time. Aetna gained 1.5 percent to $122.88. (Horowitz, 6/ 21)
Capital Public Radio:
Aetna Humana Merger Gains Approval From State Agency
Aetna and Humana are one step closer to merging after approval from the California Department of Managed Health Care (DMHC). The merger will affect about 1.5 million people currently enrolled in health plans through the two insurers. This is the third health insurance merger the department has approved. (Johnson, 6/20)