California Department of Managed Health Care (DMHC) Director Shelley Rouillard approved Optum, Inc.’s acquisition of DaVita Health Plan of California.
“Over the past few years, there has been rapid consolidation in the health care industry including health plan mergers. As the primary state regulator of health plans, our job is to protect the health care rights of impacted enrollees and ensure a stable health care delivery system,” said DMHC Director Rouillard. “The Department’s approval of this merger includes several conditions that will protect enrollees and support behavioral health services.”
Per the DMHC’s approval, Optum and DaVita agree to not increase premiums as a result of acquisition costs, and keep premium rate increases to a minimum. The plans also agree to invest at least $58 million in California. This includes:
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