Federal Judge Approves CVS Acquiring Aetna

It was on Wednesday that a federal judge agreed with a Justice Department decision that allows CVS Health Corp. and U.S pharmacy chain to merge with Aetna, a health insurance company.

According to the judge, the agreement was in fact legal under antritrust law.

Judge Richard Leon of U.S. District Court for the District of Columbia examined a government plan that was announced in October to allow the merger on condition that Aetna sell its Medicare prescription drug plan business to WellCare Health Plans. These deals have already closed.

“If the Tunney Act is to mean anything,” Leon wrote, “it surely must mean that no court should rubberstamp a consent decree approving the merger of ‘one of the largest companies in the United States’ and ‘the nation’s third largest health-insurance company,’ … simply because the Government requests it!”

“CVS Health and Aetna have been one company since November 2018, and today action by the District Court makes that 100 percent clear. We remain focused on transforming the consumer health care experience in America,” said CVS spokesman T.J. Crawford.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.