Final State OKs Aetna-Prudential Merger

Aetna Inc. completed its purchase of Prudential Health Care to become the nation’s largest health maintenance organization. The deal was consummated when New Jersey became the last state to approve the merger. As several states have done, New Jersey forced Aetna to meet several conditions, including promising to keep 90% of Prudential’s doctors for the next three years. The American Medical Assn. and physician groups nationwide argued the merger would create a monopoly in several cities, severely limiting health insurance choices for consumers and forcing doctors to accept lower fees. The combination of Aetna and Prudential Health Care will provide benefits to about 22 million people nationwide.

Separately, Aetna executives denied rumors circulated on an Internet chat site that it plans to buy Oxford Health Plans. Shares of Oxford, had risen as much as 8% to $17.63 amid rumors of a potential merger, before slipping back to $16.50, up 25 cents, on the Nasdaq Stock Market. Aetna closed down $2.44 at $81.56 on the NYSE.