Cigna and Express Scripts on Tuesday cleared their final state hurdle towards an expected merger closing on Thursday.
On Tuesday, the companies received regulatory approval from New Jersey, the last state to weigh in after California and New York gave their permission, with conditions, last week.
WHY THIS MATTERS
The $ 67 billion merger is the second recent vertical consolidation to integrate operations between an insurer and pharmacy benefits manager.
CVS Health and Aetna finalized their consolidation in late November, though the terms of the settlement agreement are being scrutinized by a federal judge.
The arguement for these integrations is that they extend the benefits of a stronger population health strategy and lead to cost savings, especially for prescription drugs. It also gives the larger company greater competitive clout.
ON THE RECORD
“All required regulatory approvals now have been received and the parties expect to close the transaction on December 20, 2018, subject to the satisfaction of all other closing conditions,” said the filing with the Securities and Exchange Commission.
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Email the writer: susan.morse@himssmedia.com