A California regulator is approving Aetna Inc.'s proposed acquisition of rival health insurer Humana Inc.
Shelley Rouillard, director of the California Department of Managed Health Care, announced her decision Monday.
As a condition of the approval, Aetna agreed to limit premium increases in the small group market and to allow greater state oversight of its rates. The company will also have to keep certain decision-making functions in California and must invest in various health initiatives.
The proposed $35-billion cash-and-stock...