The Pennsylvania Insurance Department approved 's pending acquisitionof Humana Medical Plan ofPennsylvania Inc., according to a March 30 document.
The deal is part of Aetna's bid to
The department "has not found that there is substantialevidence of anti-competitive effect" upon reviewing the deal, according tothe document. "To the contrary, Aetna has submitted evidence that theproposed acquisition of control will deliver important efficiencies and otherbenefits to Pennsylvania subscribers that cannot otherwise be achieved."The benefits cited include expanded array of plans and lower operating expenses.
The approval was subject to certain conditions. HumanaMedical Plan of Pennsylvania will be prohibited from declaring or paying anydividends, returns of capital or any other type of distributions to Aetnawithout the approval of the state's insurance commissioner, unless thedistribution has been approved by the department as a transaction betweenaffiliates. For three years after the effective date of the acquisition, HumanaMedical Plan of Pennsylvania cannot voluntarily withdraw its certificate ofauthority to engage in the business of insurance in the state and cannotredomesticate to another jurisdiction.