CVS Wins N.Y. Regulator's Approval for Aetna Deal; Shares Gain
(Bloomberg) -- CVS’ commitments to the state of New York Department of Financial Services to secure approval for its Aetna acquisition address insurance law factors and concerns by hospital, medical, pharmacy and consumer groups.
- Conditions include enhanced consumer and health insurance rate protections, privacy controls, cybersecurity compliance and a $40 million commitment to support health insurance education and enrollment in the state
- Increased health insurance rates cannot be sought in New York to pay for the cost of the acquisition, while premiums and cost-sharing owed by policyholders cannot be increased
- Dividends cannot be paid by Aetna without express prior approval from the Superintendent for three years
- CVS said last week it had received approval from 26 of the 28 state departments of acquisition, and received New Jersey state approval one day later
- CVS stock up about 1.5% pre-market
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