Published: Sat, January 13, 2018
World | By Paul Elliott

NYC halts $9.6M incentive package to move Aetna to city

NYC halts $9.6M incentive package to move Aetna to city

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the USA print edition of The Wall Street Journal (January 13, 2018).

Aetna has inked a lease to occupy a new building in lower Manhattan, committing to move 250 headquarters workers to the site from Hartford. CVS will maintain its corporate headquarters in Rhode Island.

The insurance giant announced in June that it would move its headquarters to New York City beginning in late 2018 after almost two centuries in Hartford, Connecticut.

CVS Health announced in December that it was buying Aetna.

CVS Healthcare will keep Aetna Inc.'s operations in Hartford after it acquires the insurance company, a CVS official said Friday. Aetna told WNPR in an email, "all Aetna locations will be evaluated as part of the integration planning process". The city of Hartford is in its own financial straits, relying on state aid to balance its budget.

"We had a good discussion about CVS Health's commitment to community and proud history as a New England-based company - as well as Aetna's history in Hartford", Bronin said Friday.

"I'm thrilled that CVS has confirmed that Aetna will continue to call Hartford home", Mr. Malloy said.

NY city officials, the business publication reported, withdrew a $9.6 million incentive package that was offered to Aetna because the relocation wasn't moving forward.

Aetna, which is the third-largest health insurer in the country, employs more than 5,000 people in CT. That had been part of a $35 million package offered jointly by the city and the state of NY.

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