Dive Brief:
- Aetna announced Monday it has acquired the approval of Florida's office of insurance regulation for its pending acquisition of Humana, an important step given the two insurers serve a large number of Medicare Advantage members in the state.
- The insurer says this marks the approval of 10 of the 20 state approvals it requires to complete the transaction.
- Florida's approval hinges on the condition that Aetna grows its participation in the state insurance exchange, which would prevent the insurer from potentially opting out in the future.
Dive Insight:
The development is progress toward the merger but still does not indicate smooth sailing for the rest of the process. The carrier still depends on approval from the rest of the involved states, then ultimately the Department of Justice.
The company's announcement stated the possibility the DOJ would require divestitures in some areas and described it as "a standard tool" that comes as part of the approval processes. "If divestitures are required, there are competitors in good standing that are able to provide consumers with options,” Aetna wrote.
Meanwhile, opponents of the merger are protesting the state of Kentucky's approval of the deal after its insurance commissioner backed out of holding an optional public hearing that was slated for spring, and moved forward on the approval without providing the sought-after transparency and opportunity for public input.