Aetna Breaches 50-Day Moving Average After Insurer Clears Key Regulatory Hurdle

Aetna Inc

shares breached its 50-day moving average on a bullish note. The event follows the company's announcement that Florida regulators have approved its purchase of Humana Inc's

Florida companies, thereby clearing a key regulatory hurdle. The Florida regulators have approved the merger with a condition that Aetna must expand operations into under-served counties. As a result, Aetna has secured 10 of the 20 state approvals required. "We are pleased that in its review, the OIR recognized how traditional Medicare competes with Medicare Advantage plans, and that consumers have robust choice in a competitive landscape. As we consider our future presence on the exchange, we will look for opportunities to expand into communities where we can give consumers a valuable offering at an affordable cost," Aetna said in a statement. Aetna is in the process of completing the merger with Kentucky-based Humana in a transaction valued at $37 billion. The company needs approval from Department of Justice, which may require divestitures in some geography, and is a standard tool as part of its approval processes. "We continue to cooperate with the Department of Justice as it continues its review If divestitures are required, there are competitors in good standing that are able to provide consumers with options," the insurer said in a statement. Shares of Aetna were down 3 percent this year. They have been trading between $92.42 and $134.40 during the last one year.