Health insurer Aetna Inc. said Tuesday it finished its $600 million purchase of privately held Prodigy Health Group, which administers self-funded health plans for big companies.
Aetna, based in Hartford, Conn., first announced the deal in April and said Tuesday that Prodigy will keep its current management and operating structure and compete under its own brands.
Prodigy, based in New York, operates in 15 states and administers plans for companies with between 100 and 5,000 employees. In self-funded plans, the employer pays the claims and assumes the risk while the insurer administers the policies.
Aetna is the third-largest health insurer based on enrollment, trailing WellPoint Inc. and UnitedHealth Group Inc.
Shares of Aetna climbed 3 percent, or $1.36, to $44.66 in Tuesday trading, while broader trading indexes were up more than 1 percent.