US: Aetna said to plan asset sales to dismiss antitrust worries

Aetna, the health insurer, is preparing to sell assets worth several billion dollars as it seeks to quell regulatory concerns over its proposed $37 billion takeover of smaller rival Humana according to people familiar with the matter.

The company is working with advisers to identify a portfolio of assets that could, if divested, reduce any significant overlap between its operations and those of Humana, the people said, asking not to be identified as the matter is private. The process is advanced and assets could be marketed to potential buyers within weeks, the people said.

Any sale of assets by Aetna would be conditional on the completion of its deal with Humana, they said.

The market for private health plans for the elderly, known as Medicare Advantage, has emerged as a focus of antitrust concern. An analysis by the Kaiser Family Foundation last July found that a combined Aetna-Humana would have at least half of all Medicare Advantage enrollees in 10 states, and at least two-thirds in five states.

Full Content: Bloomberg

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