California's insurance commissioner gave the go ahead for the $9.2 billion merger of PacifiCare and the UnitedHealth Group. The deal creates one of the largest health plans in America--and the largest by market cap--with 26 million subscribers. Some analysts had predicted that commissioner John Garamendi might decide to block the deal on the grounds that it could hurt consumers, but he allowed it in return for $250 million in investments and contributions to medically underserved communities. Last year Garamendi's opposition to the $16.4 million Anthem-WellPoint deal caused a delay of several months. The UnitedHealth deal still must win approval from the Department of Justice and regulators in other states in which the company does business.
- see this AP article