Even before federal and state officials made the demand, Aetna Inc. (NYSE: AET) agreed to divest its standalone Medicare Part D business to WellCare Health Plans (NYSE: WCG) for an undisclosed price.
The deal was struck to help deflect objections to Aetna’s takeover by CVS Health (NYSE: CVS), which was announced on December 3, 2017. The $77 billion price for that deal consists of $69 billion in cash and stock, and Aetna’s debt of approximately $8 billion.
This transaction with WellCare is subject to the completion of that deal, which CVS expects will close in the early part of the fourth quarter of 2018.
Aetna’s standalone Medicare Part D business includes more than 2.2 million Individual and Group standalone Part D members. The company will retain its Individual Medicare Advantage, integrated Medicare Advantage with Part D and standalone Group Medicare Advantage, Medicare Supplement, Ancillary and Commercial plans and products.