News Headlines Article

State Regulators Green Light $6.8 Billion Health Insurance Merger
California Healthline

Both of California’s health insurance regulators Tuesday signed off on a $6.8 billion acquisition of Health Net, Inc. by St. Louis, Missouri-based Centene Corp., clearing the way for the deal to close.

The approvals, which followed eight months of sometimes heated negotiations and public hearings, were the final regulatory hurdles standing in the way of the transaction.

The merger is the smallest of three insurer mergers under review by state regulators.

The heads of both regulatory agencies noted that their consent comes with plenty of caveats.

Health Net, based in Woodland Hills, Calif., must keep its headquarters in the state, and the combined company must spend around $370 million to make improvements in both the quality of care and access to it.