Morning Briefing
Summaries of health policy coverage from major news organizations
A Federal Judge Is Making Noise About Halting CVS-Aetna Deal, But What Can He Actually Do About It?
A federal judge is considering halting the integration of CVS Health and Aetna 鈥 even though the two companies closed their merger last week. Judge Richard Leon of the U.S. District Court for the District of Columbia in a hearing Monday floated the idea that CVS and Aetna keep their companies separate until he can determine whether the agreement the Justice Department struck with the companies clears anti-competitive concerns, according to a transcript of the hearing. (LaVito, 12/3)
It is highly unusual for a judge to make such an announcement, since Justice Department antitrust enforcers had approved the deal in October under the condition the companies sell Aetna鈥檚 Medicare drug business to preserve competition. The companies sold those assets to WellCare Health Plans Inc. When the Justice Department identifies concerns with a merger鈥攁nd reaches an agreement with the merging companies to address them鈥攁 federal law called the Tunney Act requires the government to file the proposed settlement for approval by a federal court, which determines whether the deal is in the public interest. (Kendall, 12/3)
The ruling complicates CVS鈥檚 plans for the Aetna acquisition, a $68 billion deal that creates a health-care giant with a hand in insurance, prescription-drug benefits and drugstores across the U.S. CVS closed the takeover on Nov. 28 after obtaining final regulatory approvals and now faces the prospect that its plans for the combined company will be put on hold. 鈥淐VS Health and Aetna are one company, and our focus is on transforming the consumer health experience,鈥 CVS said in a statement, without commenting further. (McLaughlin, 12/3)