CVS pledges
Blockbuster deal must still be approved by federal regulators
to keep Aetna in Hartford for 10 years.
CVS Health Corp. told Connecticut insurance regulators Wednesday it will keep Aetna Inc. in Hartford for at least 10 years as part of its $69 billion acquisition.
In addition, the number of employees at Aetna and its Connecticut subsidiaries will remain about 5,300 for at least four years after the deal closes, according to a letter it filed with the state Insurance Department. The number reflects current staffing as of Oct. 1.
The blockbuster deal, which was announced last December, must be approved by federal regulators. The state Department of Insurance has scheduled a hearing today to solicit public comment.
CVS also has committed Aetna to honor its pledge to help the city of Hartford with a $50 million contribution over five years. The insurer offered the aid in 2017 with The Hartford Financial Services Group Inc. and The Travelers Cos. Inc. Initial payments have already been made.
In addition, CVS will continue to honor the civic contributions of Aetna Foundation at or above current levels, according to the commitment letter posted on the Department of Insurance website.
Gov. Dannel P. Malloy said Hartford “will continue to emerge as a hub for business, and Aetna’s continued presence is the economic backbone for long-term success.”
CVS announced in January it will keep Aetna in Hartford, the insurer’s home city since 1853. It will be one of several hubs, or centers of excellence as CVS calls the sites. Others are operated in Arizona, Illinois and Texas.
The announcement ended months of speculation about the location of Aetna, which sought unsuccessfully to move to New York City in search of technology workers before the CVS purchase deal was announced. CVS is based in Woonsocket, R.I.
The decision to keep Aetna in Hartford was cheered by city and state officials who were already downcast following the 2016 announcement by General Electric Co. that it would move to Boston from Fairfield.
The deal must still clear review by the U.S. Department of Justice and state regulators. A spokeswoman for CVS said the deal has been approved by a “substantial number of states,” but she did not provide details.
CVS has said the Aetna deal will integrate the work of doctors, pharmacists, other health care professionals and health benefits companies to establish a less expensive and easier to use platform.
The acquisition by CVS, which began as storefront pharmacies and is now a pharmacy benefits manager that helps employers control drug costs, would represent a new direction in the health care industry.
For Aetna, it could be a major step to establishing itself as a digital business, using its significant collection of data while advancing its work in personalized health.