Aetna is selling its Medicare prescription drug business, potentially clearing the way for CVS Health to complete its $69 billion takeover of the insurer.
CVS announced plans to buy Aetna late last year. The deal is expected to give the drugstore chain a bigger role in health care, with the companies combining to manage care through CVS stores, clinics and prescription drugs.
Industry experts say regulators may have been concerned about a Medicare business overlap between the companies. But Leerink analyst David Larsen says he is more confident the deal will be approved due to the sale that Aetna announced Thursday.
Aetna is not disclosing terms of its deal with fellow insurer WellCare.
Aetna Inc. and CVS Health Corp. expect their combination to close before the end of this year.