A number of health insurers nationwide are merging or considering merging, including companies doing business here in Washington State. The Office of the Insurance Commissioner (OIC) is closely monitoring these consolidations to ensure that the financial condition of the companies is sound and consumers are protected.
CVS acquisition and merger of Aetna
CVS Health Corp (CVS) filed an application for the acquisition and merger of Aetna Inc (Aetna) received on January 17, 2018. Aetna Inc is the ultimate controlling person of Aetna Better Health of Washington Inc. located in Seattle, WA. Aetna Better Health of Washington Inc. was recently formed as a Washington domestic health care service contractor during October 2017.
The CVS-Aetna merger is also under review by the Federal Trade Commission under the Hart-Scott-Rodino Act. The Department of Justice requested additional information on February 2, 2018. Their review remains pending.
We have established the review process under a case management order to determine the fairness of the transaction and hear any objections to this proposed acquisition. No one registered to participate as an intervenor in this adjudicative proceeding.
Under the Notice of Hearing dated May 16, 2018, the hearing is scheduled for July 12, 2018, at 9:00 a.m.
Information about the proposed transaction and case management order can be found in the Administrative Hearings website under Aetna Better Health CVS - Docket No 18-0029.
CIGNA acquisition of Express Scripts
The Express Scripts acquisition by CIGNA was announced on March 8, 2018. Washington received a request for exemption regarding the proposed acquisition because Washington does not have a domestic insurer related to Express Scripts.
Medco Containment Life Insurance Company, a Pennsylvania insurer, is part of the Express Scripts holding company system and actively writes Medicare Part D prescription drug plans in Washington.
The CIGNA/Express Scripts acquisition is under review by the Federal Trade Commission and the United States Department of Justice under the Hart-Scott-Rodino Act. Their review remains pending.