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.