Cigna-Express deal gets key approvals; nears finish line

HBJ File Photo Cigna headquarters in Bloomfield.

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By Joe Cooper

Bloomfield health insurer Cigna last week scored two key approvals on its proposed deal to acquire pharmacy-benefits manager Express Scripts for $67 billion.

State regulators in New York and California on Thursday issued approvals for the proposal after receiving assurances that consumers would not pay for acquisition costs.

The approval from the California Department of Managed Health Care came after Cigna and Express assured regulators the combined company would not increase premiums to offset acquisition costs and that the companies would also minimize premium rate increases. Also, the companies agreed to invest $60 million in California's healthcare delivery system.

Cigna and Express expect the deal to be completed by year-end, even though the Bloomfield insurer extended the deal’s closing date deadline by six months to June 8, 2019. The extension gives the companies additional time to receive regulatory approvals.

Approved by federal regulators in September, the deal still requires backing from New Jersey regulators.

If approved, the Cigna-Express combination would be the second major vertical integration between a health insurer and pharmacy-benefits management company this year.

CVS Health completed its $69 billion acquisition of Hartford health insurer Aetna in late November. But that deal must also clear another hurdle before it’s officially completed.

CVS and Aetna officials are due in federal court Tuesday afternoon to justify their combination to complete a deal that was previously signed off by the U.S. Department of Justice.