Thursday, March 28, 2024
Hawai'i Free Press

Current Articles | Archives

Friday, October 12, 2018
Justice Department Signs Off on CVS-Aetna Merger
By Selected News Articles @ 2:56 PM :: 3318 Views :: National News

Justice Department Signs Off on CVS-Aetna Merger

by Dan McCue, Court House News, October 10, 2018

(CN) – The Justice Department on Wednesday gave its preliminary approval to  CVS’s $69 billion purchase of Aetna after the two companies agreed to spin off Aetna’s Medicare Part D prescription drug plan business.

CVS, the nation’s largest drugstore chain, announced in December 2017, that it would buy Aetna for about $69 billion in cash and stock.

But the Justice Department immediately expressed concern about the deal due to a potential overlap between the Medicare Part D plans offered by both companies. It said a divestiture of one of the plans was a condition to winning final approval, and on Sept. 27, Aetna announced it had agreed to sell its plan to WellCare Health Plans, of Tampa, Fla., for an undisclosed amount.

The merger combines CVS’ pharmacies with Aetna’s insurance business, and will effectively allow CVS to turn its retail locations into medical offices for basic services.

CVS Health president and CEO Larry Merlo has described the merger as an “opportunity to combine capabilities in technology, data and analytics to develop new ways to engage patients in their total health and wellness.”

“Our focus will be at the local and community level, taking advantage of our thousands of locations and touchpoints throughout the country to intervene with consumers to help predict and prevent potential health problems before they occur,” he said in a statement. “Together, we will help address the challenges our health care system is facing, and we’ll be able to offer better care and convenience at a lower cost for patients and payors.”

In a proposed settlement filed in the federal court in Washington, D.C. on Wednesday, the Justice Department said Aetna has agreed not only to divest its individual prescription drug plan business to WellCare, but will also allow the company to hire key employees currently operating the business. 

Aetna has also agreed to assist WellCare in operating the business during the transition and help affected customers transfer to the new provider.

Assistant Attorney General Makan Delrahim said Wednesday that “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 healthcare services that American consumers can obtain.”

The attorneys general from California, Florida, Hawaii, Mississippi, and Washington participated in the settlement.

CVS’s Merlo said the Justice Department’s approval “is an important step toward bringing together the strengths and capabilities of our two companies.”

“We are pleased to have reached an agreement with the DOJ that maintains the strategic benefits and value creation potential of our combination with Aetna,” Merlo said. “We are now working to complete the remaining state reviews.”

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Moms for Liberty

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

MentalIllnessPolicy.org

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT