Categorized | Colorado News, National News, News

CVS & Aetna Merger – FINALIZED

CVS and Aetna are officially one mega company.  The merger combines the largest retail pharmacy corporation with the third largest health insurance company in the country.  Annual revenues are predicted to exceed $245 billion.  The merged company will operated under the name CVS Health.   Aetna will be run as a standalone business within the company.

The companies obtained conditional approval Nov. 26 from the two remaining states required to complete the $69 billion acquisition. With all 28 of the required state insurance regulatory approvals in hand, the corporations had anticipated speedy closure on the deal.  At least two of the states, California and New York, have attached conditions to their approval of the merger. Among other stipulations, the two states are requiring that the new entity place limits on raising health insurance premiums and invest in educating the public on the enrollment process.

The U.S. Department of Justice gave its preliminary approval to the deal in October, pending the divesting of Aetna’s Medicare Part D business to a subsidiary of WellCare Health Plans.  The transfer of Aetna’s Medicare Part D business is scheduled to close soon.

Read more at Forbes.

Read more at HealthLeaders.

Read more at HEALTHCARE FINANCE.

Read more at JDSupra.

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HCCA, publishers of the Colorado Managed Care Newsletter, began reporting on the financing of healthcare in Colorado in December of 1983. As we begin our 34th year, we are grateful for the opportunity to be one of your sources of information in this ever-changing, healthcare market.