News: Humana, Aetna Settles Termination Fees $HUM

Health insurer Humana Inc and buyer Aetna Inc set fees to be paid in the event of a failure of the largest deal in the health insurance industry.

Aetna, which said last week it would buy Humana for about $37 billion in cash and stock, has to pay a termination fee of $1.69 billion, Humana said in a regulatory filing on Tuesday.

Humana would pay the larger rival $1.31 billion if the deal is terminated.

The deal faces antitrust issues as the authorities scrutinize how the combination will affect competition for each line of insurance: Medicare, Medicaid for the poor, individual insurance, commercial insurance for small and large businesses and the large employer business.

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