NY officials consider blocking $69B CVS-Aetna merger
Officials in New York state are reportedly considering blocking part of the ongoing merger between CVS Health and Aetna, according to Bloomberg.
The deal, worth $69 billion, has already received preliminary approval from the Department of Justice, with some contingencies, and was approved by regulators in Connecticut this week. The DOJ required that Aetna divest its Medicare Part D prescription drug plan in order for the deal to go through. WellCare Health Plans agreed to purchase Aetna’s Part D business in September.
The transaction still needs approval from state regulators, though executives from both companies expect the transaction will be completed before the end of the year.
The deal was the topic of a public hearing in Manhattan on Thursday, according to Bloomberg, with Superintendent of the Department of Financial Services Maria Vullo stating the agency may block the merger. She “repeatedly asked CVS and Aetna representatives for written evidence that they would deliver on promises to lower prices,” according to Bloomberg.
The deal has been met with some backlash from industry groups that argue the mega-merger will dampen competition.
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Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."