Breaking up is hard to do, especially on Valentine’s Day, and even for insurance carriers. Aetna and Humana announced today they are terminating their multibillion dollar merger deal. The merger, announced in July 2015, was blocked last month by a federal court in an antitrust case brought by the U.S. Department of Justice. The court concluded the merger would undermine competition in the Medicare Advantage market. In an effort to appease antitrust concerns, Aetna offered to sell off some of its Medicare Advantage assets.
With the merger now called off, Aetna will pay Humana a $1 billion breakup fee. Aetna is also scrapping its plans to sell some of its Medicare Advantage assets to Molina Healthcare.