Aetna and Humana this week announced that the two companies have agreed to sell Medicare Advantage assets to Molina Healthcare Inc. for approximately $117 million, which is based on the estimated number of members in the plans covered in the transactions.
“Our agreements with Molina promote competition within the large, diverse and highly regulated Medicare industry, and ensure that seniors continue to have an abundance of options when they decide how to receive Medicare coverage,” Aetna chairman and CEO Mark T. Bertolini and Humana president and CEO Bruce Broussard said in a joint statement. “We believe that these divestitures taken together would address the Department of Justice’s perceived competitive concerns regarding Medicare Advantage. We are confident in Molina’s ability to deliver continued access to quality care for our members in these areas.”
Under the agreements, Molina will gain about 290,000 Medicare Advantage members throughout 21 different states. The transactions are subject to the successful completion of Aetna’s proposed acquisition of Humana, which the U.S. Department of Justice is seeking to block.
“We look forward to making our position clear in court, where the facts will show that our combination will result in a broader choice of products, access to higher quality and more affordable care, and a better overall experience for consumers,” Bertolini and Broussard said.
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