Morning Briefing
Summaries of health policy coverage from major news organizations
After Defeat In Court, Aetna And Humana Announce They Will End Their Effort To Merge
CNBC: Aetna, Humana End $34 Billion Merger Agreement
Aetna and rival Humana are terminating their merger, after their $34 billion deal was blocked by a federal court on antitrust grounds. Aetna will pay Humana a $1 billion break-up fee, in accordance with the agreement. (Coombs, 2/14)
Reuters: Aetna, Humana Walk Away From $34 Billion Deal After Court Ruling
After the Jan. 23 court ruling, Aetna and Humana had said they were weighing whether to appeal the decision and extend their agreement, which was set to expire on Feb. 15. Aetna and Humana announced the deal in July 2015, just a few weeks before Anthem Inc and Cigna Corp said they would also combine. A year later, the U.S. Justice Department sued to block both transactions and won in separate lawsuits, derailing what would have been a massive industry consolidation to three insurers from five. (Humer, 2/14)
Hartford (Conn.) Courant: Aetna, Humana Call Off $37 Billion Deal
"While we continue to believe that a combined company would create greater value for health care consumers through improved affordability and quality, the current environment makes it too challenging to continue pursuing the transaction," [Aetna Chief Executive Officer Mark] Bertolini said. "We are disappointed to take this course of action after 19 months of planning, but both companies need to move forward with their respective strategies in order to continue to meet member expectations," Bertolini said.
The Wall Street Journal: Aetna, Humana Mutually End Merger Agreement
The end of their deal, which would have forged a diversified insurance powerhouse, leaves both insurers with challenges as they forge separate paths forward. ... In his ruling last month, U.S. District Judge John D. Bates said the merger would unlawfully threaten competition, harming seniors who buy the private Medicare coverage known as Medicare Advantage. The 156-page decision said that combining the two companies likely would lead to a substantial lessening of competition for Medicare Advantage plans in 364 counties. (Wilde Mathews, 2/14)
Bloomberg: Aetna, Humana Abandon $37 Billion Merger Blocked By Judge
Aetna and Humana, which had agreed to combine in July 2015, are free to make new deals or spend billions of dollars on buying back their own shares. Another massive health insurance deal, meanwhile, is grinding forward -- for now. Anthem Inc. said on Monday that it’s seeking a fast-track appeal of a different judge’s ruling that blocked its own proposed $48 billion acquisition of Cigna Corp. (Tracer, 2/14)
