Judge Who Slowed Down CVS-Aetna Merger Now OKs Deal, Dismissing Concerns That It Will Hurt Competitiveness
U.S. District Judge Richard Leon's decision not to just rubber-stamp the merger had thrown a dark cloud over the deal in recent months. But he ruled that the opponents' arguments were unpersuasive, saying that the health care markets at issue in the case “are not only very competitive today, but are likely to remain so post-merger.”
Reuters:
U.S. Judge Approves CVS Purchase Of Insurer Aetna
A federal judge reviewing a Justice Department decision to allow U.S. pharmacy chain and benefits manager CVS Health Corp to merge with health insurer Aetna said on Wednesday that the agreement was in fact legal under antitrust law. Judge Richard Leon of U.S. District Court for the District of Columbia had been examining a government plan announced in October to allow the merger on condition that Aetna sell its Medicare prescription drug plan business to WellCare Health Plans Inc. Both deals have already closed. (Bartz, 9/4)
The Wall Street Journal:
Judge Approves Settlement Allowing CVS-Aetna Merger
The judge, in a first for a court review of a government merger settlement, convened hearings to consider live witness testimony from the deal’s critics who said the Justice Department’s deal with the companies was inadequate. Judge Leon on Wednesday said the critics’ testimony ultimately was unpersuasive. He said the health-care markets at issue in the case “are not only very competitive today, but are likely to remain so post-merger.” (Kendall, 9/4)
Modern Healthcare:
Federal Judge Signs Off On CVS-Aetna Merger After Post-Deal Review
He further explained that despite critics' concerns that the merger would reduce competition, "CVS' and the government's witnesses, when combined with the existing record, persuasively support why the markets at issue are not only very competitive today, but are likely to remain so post-merger." (Livingston, 9/4)
Bloomberg:
CVS Wins Court Approval For Antitrust Accord On Aetna Deal
That isn’t necessarily the landscape Patrice Harris, president of the AMA, sees. “We know from history that when health insurance and pharmaceutical benefit management markets are ruled by only a few massive companies, patients pay a steep price,” Harris said in a statement after the ruling. Referring to the “unprecedented judicial review” spurred by the opponents’ concerns, she said regulators “must vigilantly monitor the conduct of the merged firm to make sure that this colossal new entity does not hurt patients.”(Harris and McLaughlin, 9/4)
The Hill:
Federal Judge Approves $70 Billion CVS-Aetna Merger
U.S. District Judge Richard J. Leon initially ordered hearings after he said the Justice Department and the companies acted like his approval was a mere “rubber stamp.” The companies had closed the deal just one month after reaching an agreement with federal regulators, which angered Leon. (Weixel, 9/4)
