While CVS and Aetna garnered approval from the Department of Justice to move forward with their transaction — provided Aetna sells its Medicare Part D business to WellCare Health Plans — the companies still face state regulatory hurdles. Connecticut OK’d the deal Oct. 17, and New York will make its decision after Oct. 25.
What may hold up the deal in New York is whether the merger could lead to lower prices for consumers. New York State Department of Financial Services Superintendent Maria Vullo called the Justice Department’s approval of the deal “myopic” and suggested her agency may block CVS’ merger with Aetna’s New York business.
Deputy General Counsel for CVS Elizabeth Ferguson told Ms. Vullo the company didn’t have a specific plan to curb prices, according to Bloomberg. The company has said in the past the merger would lead to greater cost efficiencies.
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