- Associated Press - Monday, June 20, 2016

SACRAMENTO, Calif. (AP) - A California regulator is approving Aetna’s proposed acquisition of rival health insurer Humana.

California Department of Managed Health Care Director Shelley Rouillard announced her decision on Monday.

As a condition of the approval, Aetna agreed to limit premium increases in the small group market and to allow greater state oversight of its rates. The company will also have to keep certain decision-making functions in California and must invest in various health initiatives.

The proposed $35 billion cash-and-stock deal would make Aetna a sizeable player in the rapidly growing Medicare Advantage business, which offers privately run versions of the federally funded health care program for the elderly and some people with disabilities.

The merger still requires approval by the U.S. Department of Justice.



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