Aetna-Humana tie-up is anti-competitive in Missouri: state regulator

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NEW YORK (Reuters) – A tie-up of Aetna Inc and Humana Inc would be anti-competitive in Missouri for several types of insurance, including individual Medicare Advantage plans where the combined company would have more than a 50 percent market share, the Missouri Department of Insurance said.

The department said in an order, dated May 24 and posted on its website, that if the proposed acquisition of Humana by Aetna were to go forward, the companies would need to stop selling individual insurance, small group and certain Medicare Advantage plans in its state.

The combination would exacerbate a consolidation trend that has contributed to higher insurance prices, the department said.

Aetna announced plans last year to buy smaller rival Humana.

The deal is being reviewed by the U.S. Department of Justice as well as state insurance regulators and antitrust authorities. Investors have been uncertain that the purchase will close, in part because anti-trust regulators are also reviewing competitor Anthem Inc’s plan to buy Cigna Corp..

“This order does not impede the DOJ approval process. We are disappointed with the Missouri order but expect to have a constructive dialogue with the state to address their concerns,” Aetna spokesman T.J. Crawford said in a statement.

According to the order, Aetna can submit a plan to the insurance regulator to address the impact of the acquisition.

(Reporting by Caroline Humer; Editing by Alan Crosby)

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