The companies received the final approval required to merge on Monday morning, almost a year after they first agreed to combine in a business that would transform the healthcare industry. The agreement was cleared by the US Justice Department in October, with the condition that Aetna divested its Medicare prescription drug store.
On Monday, New York approved the remaining Legislative Holdings combination with multiple terms, including limits on raising health insurance premiums and a promise to invest in insurance education and enrollment activities.
California required similar insurance from CVS and Aetna when it approved the deal earlier this month.
“DFS listened to the public’s concerns and have received significant commitments from CVS and Aetna to address these issues and to ensure that companies adhere to their promises of reduced costs and improved care for New Yorkers, not transferring the costs of this acquisition to New Yorkers, improve data integrity and not act in a competitive way forward, “said Minister of Finance, Superintendent Maria Vullo, in a statement.
In October, Vullo decided to block parts of the deal and called the Justice Department’s approval of the merger ‘myopic’.
CVS and Aetna has promised that their merger will change the patient’s health experience and deliver better care and coordination while saving consumer costs. But antitrust experts and health economists are still skeptical about the merits of the merger.