US District Judge Richard Leon in Washington, D.C., kicked off a three-day hearing as he considers whether to sign off on the U.S. Justice Department’s approval of the merger. The judge must finally authorize the government’s decision under the Tunney Act, but it isn’t clear whether he can actually stop the CVS-Aetna deal as the two companies are largely operating as one.
During testimony on Tuesday, Judge Leon asked the American Medical Association’s expert witness Neeraj Sood whether his review of the merger should stop at Aetna’s divestiture of its Part D business, which was where the government had focused its antitrust scrutiny.
“Should I limit myself to (prescription-drug plans) or look at how these entities that have merged will impact the greater market?” Leon said.
Sood, a University of Southern California professor and director of research at USC’s Schaeffer Center for Health Policy & Economics, demurred that he wasn’t a lawyer but told Leon that from his personal vantage point the merger did raise broad concerns about competition that could affect the public outside the Part D market.
He also framed the transaction as a purchase of Aetna’s 21 million enrollees, who could be potentially steered toward CVS Health business offerings.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Pfizer Settles Remaining Effexor XR Antitrust Claims for $25.5 Million
Apr 29, 2024 by
CPI
South Korean Regulator Approves LG Uplus and Kakao Mobility EV Charging Venture
Apr 29, 2024 by
CPI
Federal Judge Dismisses Doctors’ Antitrust Suit Against Ohio Health System
Apr 29, 2024 by
CPI
Paramount CEO Bob Bakish Steps Down as Merger Inches Closer
Apr 29, 2024 by
CPI
EU Brands Apple’s iPadOS as Gatekeeper in Tech Crackdown
Apr 29, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI