Aetna to Sell Medicare Prescription Drug Plan Business
Author By Sophia VidaPosted on Health insurance company Aetna Inc. announced on Thursday that it would be selling its standalone Medicare prescription drug plan business, called Part D plans, to WellCare Health Plans Inc.
The terms of the deal were not disclosed but Aetna said that the Medicare pharmacy prescription plans covered more than 2.2 million members. According to BMO Capital Markets analyst Matt Borsch, the sale price is likely to be in the range of $1 billion and $1.5 billion.
The move comes as the company is seeking U.S. antitrust approval to be acquired by CVS Health Corp. for $69 billion.
If approved the CVS-Aetna deal would be the second largest deal of the year between insurers and pharmacy benefit managers.
According to CVS, the Aetna acquisition is expected to close in the early part of the fourth quarter of this year.
According to Leerink analyst Ana Gupte, the sale of the entire business “almost certainly ensures approval by the DOJ,” or Justice Department.
ggfDisclaimer: We have no position in Aetna Inc. (NYSE: AET) and have not been compensated for this article.
