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Regulators Likely to Approve Aetna Purchase of Coventry


One big insurance company’s plan to purchase another is likely to be approved by Kansas regulators. A review of Aetna’s planned purchase of Coventry Health Care by the Kansas Insurance Department didn’t turn up any evidence that the deal would harm consumers. And no one opposed the deal at a public hearing yesterday (MON). So, Insurance Commissioner Sandy Praeger says she is likely to approve it soon.

Praeger says the acquisition will give Aetna a significant share of the individual market in Kansas. That market hasn’t been very important to many insurance companies but Praeger says it’s likely to grow if the federal health reform law remains in place. That’s because Kansans who today can’t get an individual policy because of pre-existing conditions will be guaranteed access to affordable policies under the law starting in 2014.

Praeger is one of more than 20 state insurance regulators who must approve the $7.3 billion deal.

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