Published: Sat, January 13, 2018
Worldwide | By Isabel Fisher

CVS to Keep Aetna in Hartford, Conn.

CVS to Keep Aetna in Hartford, Conn.

CVS Health Corp., which is buying Aetna, said Friday it will not relocate Aetna from Hartford.

CVS Health Corp. has made a decision to keep Aetna Hartford, Conn., reversing the insurer's plan announced previous year to move its corporate headquarters to New York City. "We have no plans to relocate Aetna's operations from Hartford".

CVS' chief executive Larry Merlo met with Hartford Mayor Luke Bronin at city hall Thursday.

Malloy took Friday's announcement by CVS as confirmation that CT is a "tremendous place to do business" with talented workers and a good quality of life.

Earlier this week, New York City said it was shelving a $9.6 million incentive package offered to Aetna, citing the uncertainty caused by the merger.

"My administration will continue to work with CVS Health's leadership team to ensure that their footprint in Hartford is maintained not only for the short-term but in the long-run as well", Malloy said.

NY officials seem to think Aetna's changed its mind, saying the incentive package was withdrawn because the relocation is not moving forward. At the time, Aetna said it planned to move approximately 250 employees to Manhattan, but things changed toward the end of previous year.

At that time, Aetna said all of its locations would be evaluated as part of its integration with CVS.

Aetna won't be pulling up stakes from Hartford after all now that the health insurance giant is planning to be acquired by CVS Health.

David Cadden, a business professor at Quinnipiac University, said the announcement gives CT an opportunity to change its image as a business unfriendly environment. Empire State Development, New York state's economic development arm, also had offered the insurer $24 million in performance-based tax credits to open the office in the city. "One can only hope that the governor, the mayor of Hartford and the state legislature will put together a package that will secure the presence of the headquarters for the foreseeable future". "I'll continue to monitor the companies' merger to make sure it's a positive step for CT patients and consumers".

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