New Filing Requirements for Health Insurer and Third Party Administrator M&A Transactions

Beginning April 1, 2024, certain acquisitions of health insurers domiciled outside of, but licensed in, California are subject to new filing requirements under California’s Health Care Quality and Affordability Act. Likewise, certain acquisitions of California licensed third party administrators (domiciled in or outside of the state) is similarly subject to the Act. This article focuses on the Act’s filing requirements and how it may impact the timing for closing transactions.