The deal could lead to the transformation of CVS' drug stores into retail medical centers. The American Medical Association opposes the plan.
CVS and Aetna received conditional approval for their $68 billion merger, the US Department of Justice (DOJ) announced today, clearing the way for a union between a health insurer and a pharmacy benefit manager (PBM) with a well-known brand of drugstores on corners across the country.
The deal will require the previously planned sale of Aetna’s Medicare Part D plans, which was already under way, according to the statement today from the DOJ. Last month, Aetna announced plans to sell the Medicare drug plans to WellCare health plans.
“The divestitures required here allow for the creation of an integrated pharmacy and health benefits company that has the potential to generate benefits by improving the quality and lowering the costs of the health care services that American consumers can obtain,” Makan Delrahim, the head of the DOJ’s antitrust division, said in the statement.
The merger will let CVS transform its stores into one-stop shops for a variety of medical services, and could also direct consumers with Aetna coverage that way if it would save them money in the process.
The transaction is the high point of a wave of consolidation that has transformed the healthcare landscape since the passage of the Affordable Care Act in 2010. While the antitrust division rejected direct mergers of giant insurers—such as the proposed Aetna—Humana and Anthem—Cigna mergers—it is accepting deals that allow vertical integration of the pieces of the healthcare chain. Last month, Cigna won clearance to buy pharmacy benefits manager Express Scripts.
As part of its announcement, the antitrust division said that along with 5 state attorneys general, it would file a civil antitrust lawsuit in the US District Court for the District of Columbia to enjoin the transaction, along with a proposed settlement, to resolve competitive concerns. Participating state attorneys general come from California, Florida, Hawaii, Mississippi, and Washington.
Doctors’ groups, including the American Medical Association, have spoken out against the merger, saying it would bring fewer choices for consumers and less innovation in the functioning of PBMs, which providers say contribute to rising drug prices.
Data Back Neoadjuvant Combo vs Chemo Alone for Early-Stage NSCLC
April 24th 2024For patients with early-stage non–small cell lung cancer (NSCLC), combining neoadjuvant immune checkpoint inhibitors and platinum-based chemotherapy improves 2-year outcomes over chemotherapy alone, suggest findings of an extensive literature review and meta-analysis.
Read More
Empowering Community Health Through Wellness and Faith
April 23rd 2024To help celebrate and recognize National Minority Health Month, we are bringing you a special month-long podcast series with our Strategic Alliance Partner, UPMC Health Plan. In the third episode, Camille Clarke-Smith, EdD, MS, CHES, CPT, discusses approaching community health holistically through spiritual and community engagement.
Listen
Overcoming Employment Barriers for Lasting Social Impact: Freedom House 2.0 and Pathways to Work
April 16th 2024To help celebrate and recognize National Minority Health Month, we are bringing you a special month-long podcast series with our Strategic Alliance Partner, UPMC Health Plan. Welcome to our second episode, in which we learn all about Freedom House 2.0 and the Pathways to Work program.
Listen
Downward Morbidity, Mortality Trends Discovered Among Patients With Ovarian Cancer, Liver Metastases
April 24th 2024This study indicates a declining trend in morbidity and mortality rates among patients with ovarian cancer and liver metastases, highlighting the efficacy of surgery and chemotherapy in improving survival outcomes.
Read More