Florida Joins United States Department of Justice and Other States in CVS/Aetna Anticompetitive Settlement
By Whitney Ray // October 18, 2018
DOJ, Florida, California, Hawaii, Mississippi and Washington filed the civil lawsuit
BREVARD COUNTY, FLORIDA – Florida is joining the United States Department of Justice and four other states in a settlement that resolves anticompetitive concerns raised by the proposed $69 million merger between CVS Health Corporation and Aetna Inc— two of the largest companies in the health care market.
The settlement requires CVS Health and Aetna to divest all of Aetna’s Individual Prescription Drug Plan business to WellCare, a Florida-based company.
Also, as part of the settlement, the combined company will not offer an Aetna branded Individual PDP during the 2020 plan year. The settlement ensures that senior citizens in Florida will have ample and competitive options to choose from when selecting an Individual PDP. This settlement resolves a year-long investigation into the merger.
The U.S. DOJ along with Florida, California, Hawaii, Mississippi and Washington filed the civil lawsuit in the U.S. District Court for the District of Columbia to block the proposed transaction.
At the same time, the U.S. DOJ and states filed a proposed final judgment that, if approved by the court, would resolve the anticompetitive concerns and the lawsuit.
The complaint alleges that the merger would substantially decrease competition between parties, increasing prices and reducing quality in 16 of 34 CMS Part D Medicare regions, including Florida. Individual PDPs provide seniors, with original Medicare, the option to obtain insurance coverage for prescription drugs for a set premium and cost share rate.
The wide range of individual drug plans ensures that senior citizens, in Florida and nationwide, pay lower prescription drug costs, receive enhanced plan designs and improved quality of coverage. The prescription drug market needs to remain competitive to ensure seniors can select the best plan that provides them with the coverage they need.
To view the complaint, click here.
To view the settlement, click here.
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