Filed Under:Health Insurance, Individual Health

Aetna to Acquire Coventry for $7.3 Billion

(AP Photo/Douglas Healey, file)
(AP Photo/Douglas Healey, file)

Aetna Inc. (NYSE:AET) has tried to position itself for the world of Patient Protection and Affordable Care Act (PPACA) health insurance exchanges by agreeing to pay $7.3 billion for Coventry Health Care Inc. (NYSE:CVH).

The price includes $5.7 billion in cash and stock and an agreement by Aetna, Hartford, to take on responsibility for $1.6 billion in Coventry notes that will come due from 2014 through 2021.

PPACA will require states and federal agencies to create a new system of exchanges, or Web-based health insurance supermarkets, that individuals and small groups can use to buy health coverage starting in 2014. PPACA also will require health carriers to offer coverage on a guaranteed issue, mostly community-rated basis.

See also: PPACA: A History

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Nichole Morford

Nichole Morford
Managing Editor

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