ABS Florida Regulator Approves Aetna’s Acquisition of Humana
The approval of the acquisition of Humana by Aetna was announced last week by Florida’s insurance regulator with conditions that by 2018 the carrier must offer their Obamacare marketplace plans in five additional counties. In addition, their plans must be available throughout the state by 2020.
So far Aetna has received approval in 10 out of the 20 states needed to move forward with the acquisition. The deal is valued at between $34 and $37 billion and is expected to close in the fourth quarter.
The United States Federal Justice Department must also approve the deal, but this win in Florida was important since Humana has a large Medicare presence in the state. Although Florida’s approval did not require divestiture of any of the carrier’s assets, the Justice Department may make it a requirement of an approval.
In the event the merger is not approved based on antitrust regulations, Humana would receive $1 billion from Aetna.