The latest info on talks between Trinity Healthcare and Aetna Insurance. In 2016, HealthCare REIT took over ownership of Trinity Hospital in Chicago, Illinois, and has been working to improve both patient care and operational efficiencies at the facility. In May 2017, Aetna announced that they had reached a deal with Trinity Healthcare to take over management of their health plan business in seven states, including Florida, Georgia, Iowa, North Carolina, South Carolina, Tennessee, and Wisconsin. As part of this larger agreement, Aetna will provide coverage and services for nearly six million people enrolled in plans offered through Trinity’s managed health care organizations. Aetna will continue to cover members in areas where it already offers its own plans under contract agreements. The Aetna expects to earn $40 million from this arrangement when it begins in April 2018.
Aetna and Trinity Healthcare
This past December, Aetna and Trinity Healthcare signed a definitive merger agreement, and in January 2018, the companies submitted the necessary regulatory filings to seek approval from federal regulators. In March 2018, Aetna and the Federal Trade Commission (FTC) released a statement confirming that the FTC had completed its review of the proposed acquisition and would not block the transaction. On November 2, 2018, the U.S. Department of Justice (DOJ) confirmed that the DOJ was reviewing the proposed merger between Aetna and Trinity, but provided no further information. Read More
While the merger between Aetna/Trinity Healthcare is still pending, Aetna announced on October 12, 2018, that it was terminating its participation in Medicare Advantage plans in 11 states. The company said that it wanted to focus on providing individual employer-sponsored plans in these markets.
At the end of September 2018, Aetna announced the sale of its pharmacy benefits management business to CVS Caremark for approximately $1 billion.
To date, the merger between Aetna Trinity Healthcare remains pending, and until it closes, Aetna will remain under the oversight of the Federal Trade Commission (www.ftc.gov).
Approved the Tax
On January 23, 2019, the U.S House Committee on Ways and Means approved the Tax Cuts and Jobs Act (H.R. 1), which includes changes to the Affordable Care Act (ACA). Among those changes are provisions affecting tax credits for individuals in qualifying health insurance plans. There has been speculation about whether these changes will impact Aetna’s pending merger with Trinity Healthcare. However, a spokesperson for Aetna told Bloomberg BNA that “the ACA’s tax credit structure does not affect our decision to pursue the merger.”
Aetna has agreed to cover medical care at Trinity Health hospitals and clinics in the state of California, according to reports. This comes after the two companies announced their intention to merge in 2016. If the deal goes through, Aetna would become the largest commercial insurance carrier in the US.
Aetna Health Inc., based in Connecticut, has been working to expand its business in the cannabis industry after buying a majority stake in a Colorado-based company that operates two medical marijuana dispensaries. The company announced Monday that it plans to use that purchase as a way to enter other states where recreational pot is legal.
Trinity Health, headquartered in California, is one of several health care companies operating throughout the United States that have started offering services related to the legalization of cannabis. In addition to providing physical locations where people can buy marijuana products, Trinity has begun marketing itself as a provider of cannabis education and consulting services.
Both companies said they are open to working together. “We believe this partnership will offer patients access to innovative medicine while supporting healthcare providers who want to provide compassionate care,” said Trina Hughes, chief executive officer at Trinity’s medical division.
Aetna CEO Mark Bartolini said his insurer wanted to help customers get better medicines but didn’t want to lose money from doing so. The latest info on talks between Trinity Healthcare and Aetna Insurance.
Trinity is planning to add 25 clinics to Aetna, and Aetna wants to sell some insurance policies through Trinity. But both companies say they don’t plan to compete in each others’ markets. The deal could take about 18 months to complete, depending on regulatory approvals.
The purchase price was not disclosed, although many analysts speculated that it might exceed $10 million.
The deal marks the second time in less than a year that an insurer acquire a major stake in a cannabis company. In November, Liberty Mutual invested in Canopy Growth Corp., a publicly traded Canadian maker of marijuana products.
That investment came only months before Massachusetts voters approved recreational marijuana, giving them the green light to start selling pot there. The latest info on talks between Trinity Healthcare and Aetna Insurance.