CVS-Aetna Merger Wins Approval
New York has approved the purchase by CVS of insurance giant Aetna. This last hurdle clears the way for what analysts say will be increasing integration between medical providers and insurers.
New York’s Department of Financial Services held public hearings on the merger. In a statement, DFS said the majority of the feedback it received was critical of bringing these two companies together because it concentrated too much pricing and decision power into a single entity, specifically with prescription drugs.
New York finally approved the deal after CVS conceded not to pass along the cost of the transaction on to Aetna customers.
Separately, DFS is asking state lawmakers to grant it authority to regulate companies that decide which drugs patients are prescribed and how much they cost. To win approval of the merger, CVS vowed not to oppose that bill.