CVS, Aetna's Proposed Medicare Divest Sufficient for DOJ Nod
(Bloomberg) -- The Department of Justice has said the proposed divestiture of Aetna’s Medicare Part prescription drug plan business would fully resolve horizontal competition concerns over its acquisition by CVS.
- Assistant Attorney General Makan Delrahim said the settlement preserves competition in the sale of Medicare Part D prescription drug plans
- Aetna must also assist Wellcare in operating during the transition as part of the settlement, including hiring of key employees
- The DOJ’s complaint found anticompetitive effects absent the divestiture including increased prices, inferior customer service and decreased innovation in 16 Medicare Part D regions over 22 states
- Aetna proposed the divestiture to WellCare on Sept. 27
- CVS struck the $67.5 billion deal to buy Aetna last December
©2018 Bloomberg L.P.