Dive Brief:
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Aetna feels strongly about the merits of its proposed acquisition of Humana as it prepares for its Dec. 5 trial date, CFO Shawn Guertin said at last week's Morgan Stanley Global Healthcare Conference, Louisville Business First reported.
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At the same time, however, the company is taking nothing for granted, with Guertin adding, "You can only feel so good, though, when you're … potentially going to go to trial."
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As Aetna heads toward its trial, it also faces accusations of having attempted to avert the legal challenge by issuing what some have construed as a threat to drop much of its ACA business at the government's peril, which CEO Mark Bertolini has disputed.
Dive Insight:
Aside from the controversy around Aetna's alleged actions to pressure the DOJ, some additional drama will come amid the court challenge. That includes the expectation for a court decision to be issued in January, which would force Aetna and Humana to extend their deal for a second time.
Perhaps most interestingly across the industry will be the court's decision on how to define the market. The underpinning of Aetna's argument is that its footprint should not be viewed just in terms of the Medicare Advantage market, but also the traditional Medicare market. The case will also get to the question of whether Aetna can resolve the antitrust concerns by divesting much of its business, and just how much.
Guertin added the company will follow the same overall strategy whether it gets Humana or not. That will include three main objectives: Developing the company's retail capabilities; better aligning incentives with providers to result in improved outcomes at lower costs; and increasing its business in government-sponsored programs.