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US: California regulator signs off on $37Bn Aetna-Humana merger

By  |  June 21, 2016

California’s managed-care regulator on Monday approved Aetna Inc.’s $37 billion acquisition of Humana, despite her past criticism of Aetna’s repeated rate hikes for employers.

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 US 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.

Aetna also agreed to spend nearly $50 million toward the expansion of a Fresno service center and for a variety of health-related initiatives in the state.

California’s other insurance regulator, Insurance Commissioner Dave Jones, hasn’t yet announced a decision on the Aetna-Humana deal.

Last week, Jones rejected Anthem Inc.’s $54 billion acquisition of Cigna Corp. and asked the Justice Department to stop the deal as anti-competitive.

Full Content: Kaiser Health News

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