- New York has voiced its conditional support for Aetna's pending $37 billion acquisition of Humana, Bloomberg reported, providing one of the final state approvals required for the deal--which ultimately hinges on approval from the DOJ.
- With the addition of New York, Aetna now has 90% of the required state approvals, "which speaks volumes about the deal," Aetna spokesman T.J. Crawford told Bloomberg.
- While state regulators are supporting the deal, federal officials have indicated signs of reluctance, sparking a dip in Humana's stock price and talks of possible Aetna divestitures to reduce antitrust concerns.
New York's insurance regulator determined the merger wouldn't negatively impact the state's health insurance market by reducing competition. However, it specified the company would need to continue to offer Medicare products and that it would not be alllowed to cut benefits.
The conditions were laid out in a letter Monday from The New York Department of Financial Services to Aetna, seeking to ensure both Aetna and Humana would continue to offer private Medicare options to New York consumers, Bloomberg reported.
Analysts will next be watching what Georgia has to say. Its regulators have yet to take a stance, with a public hearing on the matter set for July 26.
As for federal approval, subscription news service MLex reported Aetna and Humana plan to defend their deal in court if the DOJ attempts to block it.