Here are five takeaways:
1. Regulators have expressed concern that Aetna’s Humana acquisition would violate antitrust laws, thereby stifling competition in the payer marketplace. Therefore, Aetna met with U.S. Department of Justice officials last week to try to alleviate such concerns. Last month, seven U.S. senators pushed forward a request to block the merger. Sen. Richard Blumenthal (D-Connecticut), one of the petition’s signers, argued the deal was anti-competitive and posed as a threat to jobs in Connecticut.
2. Last week, Aetna said it plans to sell billion-dollar assets, according to sources familiar with the matter. Sources claim Aetna and advisers are working on an asset portfolio that could limit any substantial overlap between Aetna and Humana’s operations if the assets are divested.
3. To minimize antitrust concerns, Wall Street analysts said the payer will have to sell MA plans in regions where combined market share exceeds 35 percent. However, in May, the Missouri Department of Insurance said the merger would be anti-competitive in the state, marking the first U.S. state to push back against the deal. Aetna implored a Missouri court to review the regulatory order, and maintains the merger will serve in consumers’ best interest.
4. If the merger is approved, Aetna and Humana will collaboratively have more than 4 million MA customers, making the combined entity one of the largest payers in the MA arena.
5. At the end of March, WellCare had 326,000 MA members, while Centene had slightly less with 303,000 MA members. A Centene spokeswoman stated in an email, “It is Centene’s policy not to comment on rumors. Additionally, it is a long-term policy of Centene not to participate in auction.” Humana and WellCare did not respond to St. Louis Post-Dispatch for comment, and Aetna did not comment.
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