BI’s Article search uses Boolean search capabilities. If you are not familiar with these principles, here are some quick tips.

To search specifically for more than one word, put the search term in quotation marks. For example, “workers compensation”. This will limit your search to that combination of words.

To search for a combination of terms, use quotations and the & symbol. For example, “hurricane” & “loss”.

Login Register Subscribe

Humana, Aetna set termination fees for deal


(Reuters) – Health insurer Humana Inc. and buyer Aetna Inc. set fees to be paid in the event of a failure of the largest deal in the health insurance industry.

Aetna, which said last week it would buy Humana for about $37 billion in cash and stock, has to pay a termination fee of $1.69 billion, Humana said in a regulatory filing on Tuesday.

Humana would pay the larger rival $1.31 billion if the deal is terminated.

The deal faces antitrust issues as the authorities scrutinize how the combination will affect competition for each line of insurance: Medicare, Medicaid for the poor, individual insurance, commercial insurance for small and large businesses and the large employer business.

Wall Street analysts and some antitrust experts have said that they expect the combination to be approved, although regulators may insist on some divestitures.

Aetna’s CEO said on Monday that he was confident about an antitrust approval for the deal to close by June 30, 2016. The company had already prepared for possible divestitures to address overlaps with Humana’s business, he added.

Aetna is also required to pay Humana $1 billion if the deal is not closed by June 30, 2016, according to Tuesday’s filing.

Read Next

  • Fitch puts Aetna on negative review over Humana news

    Credit rating agencies continued to sour on Aetna Inc.'s plan to acquire rival health insurer Humana Inc. on Tuesday, as Fitch Ratings Inc. placed Aetna on review with negative implications based on new details of the proposed $37 billion merger.