CVS, Aetna win final state approval for their merger

CVS, Aetna win final state approval for their merger, expect deal to close in the next few days

CVS Health and Aetna have received the final state approval they need to complete their roughly $69 billion merger and expect the deal to close “on or about” Nov. 28.

The Department of Justice granted preliminary approval in October on the condition that CVS and Aetna removed overlap between their Medicare Part D plans. This was achieved through the sale of WellCare Health Plans, the Aetna drug plan business.

Mergers between health plans, physician groups, hospitals and pharmacies/PBM’s continue to drive vertical integration in the health space as we saw with the previous Cigna and Express Scripts merger. What these mergers mean to consumers remains to be seen. Consumers could see gains with respect to cost, quality and outcomes but these mergers could also result in restricted access to providers.

Merger completed on November 28, 2018.

“As we bring our two companies together, your clients will continue to work with us as they do today, and receive the same great products, support and service. We value your business and will keep you informed every step of the way in accordance with the terms of our current agreements. To learn more, please review our Frequently Asked Questions document.”