Currently Viewing:
Newsroom
Currently Reading
Polypharmacy Plays a Role in Patients With Relapsing-Remitting Multiple Sclerosis
February 17, 2019 – Laura Joszt
Review Find Moderate Evidence That Aerobic Exercise Lowers Number of Migraine Days
February 16, 2019 – Jaime Rosenberg
Continuous Fingolimod Treatment Leads to 50% Reduction of ARRs
February 15, 2019 – Samantha DiGrande
CMS Proposes That Patients Be Enrolled in Studies to Get Coverage for CAR T-Cell Therapy
February 15, 2019 – Mary Caffrey and Allison Inserro
What We're Reading: Syphilis Rates Rising; House Democrats and ACA Suit; WHO to Look at Gene Editing
February 15, 2019 – AJMC Staff
HCCI Report: Healthcare Spending Increased Even as Utilization Decreased or Stagnated
February 15, 2019 – Wallace Stephens
AJMC® in the Press, February 15, 2019
February 15, 2019 – AJMC Staff
5 Findings From the February 2019 Issue of AJMC®
February 15, 2019 – Christina Mattina
This Week in Managed Care: February 15, 2019
February 15, 2019

California Insurance Commissioner Asks DOJ to Halt Aetna, CVS Merger

Allison Inserro
The California insurance commissioner, who has spoken out against other large healthcare mergers, this week asked the Department of Justice (DOJ) to block the $69 billion deal combining Aetna with CVS Health.
 
The California insurance commissioner, who has spoken out against other large healthcare mergers, this week asked the Department of Justice (DOJ) to block the $69 billion deal combining Aetna with CVS Health.

In his letter to Attorney General Jeff Sessions, Dave Jones cited several areas of concern and said the proposed deal is anticompetitive, and, if allowed to go through, would forever end the ability of pharmacy benefit managers (PBMs) to operate as single entities in the state.

CVS owns the PBM Caremark, and the merger will substantially enhance market concentration and power in the PBM space, as well as Medicare Part D markets, he said.

A merger of this size and type will likely lead to increased prices and decreased quality, he said, citing experts on health insurer and healthcare mergers.

In addition, a partial sale or other remedies traditionally used by the DOJ will not go far enough to protect the public or address the adverse consequences, such as charging excessive rates, or the “creation of barriers to block a potential market participant with the resources to enter into new markets,” he wrote.

The merger will eliminate Aetna as an important potential competition in the PBM market. In the present health insurance and healthcare markets, it is impossible to create from scratch a PBM competitor capable of being on the same level as Aetna, he wrote.

“If there are any other entities considering entry into the PBM market, they will now have to enter the market in conjunction with a health insurer,” Jones said.

Jones said that 2 years ago, he was in favor of blocking the Anthem and Cigna merger, which ultimately was not approved, as well as the Aetna and Humana merger. As insurance commissioner, he said he imposed “stringent requirements” on the combination of Centene and HealthNet.

Related Articles

Study Commissioned by CVS Caremark Highlights Opportunities to Significantly Reduce Spending on Costly Specialty Medications
CVS Caremark Quits for Good: Our Decision to Stop Selling Tobacco Products
PBMs: Their Role, the Problems, and How Practices Can Work With Them
CVS Health's Big Step in the Health Insurance World: A Bid to Buy Aetna
CVS to Purchase Aetna With Idea of Remaking Consumer Healthcare Experience
 
Copyright AJMC 2006-2018 Clinical Care Targeted Communications Group, LLC. All Rights Reserved.
x
Welcome the the new and improved AJMC.com, the premier managed market network. Tell us about yourself so that we can serve you better.
Sign Up
×

Sign In

Not a member? Sign up now!