Centene-Health Net Deal Gets Approval To Move Forward
The state regulators, however, wanted a few guarantees.
San Francisco Business Times:
State Regulators OK Health Net Deal, Subject To Significant Conditions
Both regulators responsible for reviewing insurance mergers in California have now approved Centene Corp.'s $6.8 billion acquisition of Health Net, allowing the controversial deal to move forward.
The California Department of Managed Health Care approved the deal Tuesday morning, followed a few hours later by the state Department of Insurance. The DMHC imposed conditions with a total price tag of at least $340 million. The DOI also imposed what Commissioner Dave Jones called "strong conditions," some of them overlapping with the DMHC's list. (Rauber, 3/22)
The Associated Press:
California Regulator Approves Centene-Health Net Deal
The regulators are requiring St. Louis-based Centene to keep Health Net’s headquarters in California. The combined company also must build a California call center, improve the health care system and provide assistance in underserved communities. Centene Corporation says in a statement that it expects to close the $6.3 billion deal shortly. (3/22)
California Healthline:
State Regulators Green Light $6.8 Billion Health Insurance Merger
One thing regulators could not exact from the insurers was an iron-clad guarantee to limit future premium increases. The only concession in that regard was that Centene officials would be required to meet directly with regulators in an effort to resolve any disagreements over proposed rate hikes. Some Health Net policies are regulated by the managed care department, others by the Department of Insurance. (Gorn, 3/22)