Florida Insurance Regulator Approves Aetna's Acquisition of Humana

By Anna Wilde Mathews 

Florida's insurance regulator approved Aetna Inc.'s acquisition of Humana Inc., and required no divestitures, an important win for the companies from a state that is a key market.

The $34 billion deal still needs to win approval from the federal Justice Department's antitrust officials, likely the most important hurdle, as well as other states. But Florida is a cornerstone of Humana's Medicare franchise, so its review was closely watched.

The Florida Office of Insurance Regulation did require that Aetna expand operations into "underserved counties," after concluding that the combination "would result in some increase in the degree of concentration that would be viewed as meaningful in markets and regions." Specifically, Aetna will need to expand its sales of Affordable Care Act marketplace plans into five new counties by 2018 and submit a plan to expand statewide by 2020, the regulator said. However, the insurer only has to sell the ACA plans in parts of the state where it can "secure a competitive position based upon adequate premium rates, " among other factors, according to the decision.

In a statement, Aetna said it was "very pleased" by the ruling, and it has won 10 of 20 state approvals it needs. It said it is cooperating with the federal review, and "it is possible that the Department of Justice will require divestitures in some geographies, which is a standard tool as part of its approval processes."

Write to Anna Wilde Mathews at [e-mail]

(END) Dow Jones Newswires

February 15, 2016 17:12 ET (22:12 GMT)

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