Morning Briefing
Summaries of health policy coverage from major news organizations
Aetna-Humana Deal Gets Green Light From California’s Managed-Care Regulator
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 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)
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. (Horowitz, 6/20)
Meanwhile, Connecticut's insurance commissioner's handling of merger proposals is under review —
On Monday, the Connecticut Office of State Ethics started a 30-day comment period regarding whether Insurance Commissioner Katharine Wade’s participation in the Cigna/Anthem merger would violate the State’s Code of Ethics. Wade has come under fire for her handling of two health insurance mega-mergers, Aetna-Humana and Anthem-Cigna. The $54 billion Cigna deal in particular raised eyebrows, as Wade was previously a Cigna vice president and her husband is now an associate chief counsel for the company. (Cuda, 6/20)
