California Department of Managed Healthcare Approves Aetna’s Acquisition of Humana
|(Sacramento) – California Department of Managed Health Care (DMHC) Director Shelley Rouillard has approved Aetna’s acquisition of Humana.
“The Department’s primary focus in reviewing mergers is to ensure compliance with the strong consumer protections and financial solvency requirements of the Knox-Keene Act,” said Director Shelley Rouillard. “The Department’s conditions on this merger will help control health care costs, increase access to care and improve quality of care. Aetna also has committed to help improve California’s health care infrastructure, and invest in programs that will serve the vulnerable populations enrolled in these plans.”
The DMHC examines proposed health plan mergers to ensure enrollee health care rights are protected and that enrollees have continued access to appropriate health care services.
As a condition of approving the acquisition, the DMHC successfully negotiated several commitments, referred to as undertakings, that will help control health care costs, expand access to care and improve quality of care. The undertakings include:
The DMHC undertakings are available here: http://dmhc.ca.gov/Portals/0/AbouttheDMHC/NewsRoom/u061716.pdf
The plans filed the proposed acquisition with the DMHC on August 10 and 13, 2015. The Department conducted a thorough review of the proposed transaction, and examined the plans’ organizational and corporate structures, administrative capacity changes, health care delivery system changes, product or subscriber changes, the effect of the transaction on the financial viability of the plans, the financing for the transaction and the impacts the merger will have on consumers.
The DMHC held a public meeting on January 4, 2016 regarding the merger. The meeting provided an opportunity for members of the public to comment and for Aetna and Humana to publicly explain the transaction.