Sources familiar with the payer matter said New York's insurance regulator conditionally approved the $37 billion Aetna-Humana merger, according to Bloomberg.
Here are five takeaways:
1. New York was one of the last U.S. states to approve the deal. An Aetna spokesperson said the payers now have 90 percent of the necessary state approvals. However, a New York regulator spokesperson did not comment.
2. On July 11, the New York Department of Financial Services outlined various conditions of the approval in a letter to Aetna. The conditions are intended to ensure the payers will continue offering private Medicare options in New York.
3. Despite state approval, the merger still needs to obtain approval from Department of Justice federal antitrust officials. Last week, Aetna executives met with Justice Department antitrust officials to discuss steps the payer is taking to address anticompetitive concerns related to its Humana merger. Aetna plans to sell billion-dollar assets to stifle regulatory concerns over its $37 billion Humana merger.
4. The state's approval is conditioned based on a sign-off from U.S. officials.
5. Humana and Aetna are awaiting approval from Georgia insurance regulators. The state set a public hearing regarding the merger for July 26.
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