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Should-Read: Sarah Kliffe: A health merger expert explains the CVS-Aetna deal

Summary:
Should-Read: Sarah Kliffe: A health merger expert explains the CVS-Aetna deal: ” Martin Gaynor…. There are a lot fewer ‘vertical mergers’ of actors in the health care system that do different things… …CVS… one of the country’s largest pharmacy benefit managers… contract with large health insurance plans to manage their drug benefits… sits down and negotiates prices with pharmaceutical manufacturers…. This is the integration between CVS and Aetna that health wonks are especially interested in…. It’s possible this type of merger could actually be good for consumers…. Even if the merger does eliminate some of the costs of a middleman, that doesn’t mean consumers necessarily benefit…. “It could pass merger review, but that doesn’t necessarily mean it will end up being a great thing for

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Should-Read: Sarah Kliffe: A health merger expert explains the CVS-Aetna deal: ” Martin Gaynor…. There are a lot fewer ‘vertical mergers’ of actors in the health care system that do different things…

…CVS… one of the country’s largest pharmacy benefit managers… contract with large health insurance plans to manage their drug benefits… sits down and negotiates prices with pharmaceutical manufacturers…. This is the integration between CVS and Aetna that health wonks are especially interested in…. It’s possible this type of merger could actually be good for consumers…. Even if the merger does eliminate some of the costs of a middleman, that doesn’t mean consumers necessarily benefit…. “It could pass merger review, but that doesn’t necessarily mean it will end up being a great thing for consumers…”

Bradford DeLong
J. Bradford DeLong is Professor of Economics at the University of California at Berkeley and a research associate at the National Bureau of Economic Research. He was Deputy Assistant US Treasury Secretary during the Clinton Administration, where he was heavily involved in budget and trade negotiations. His role in designing the bailout of Mexico during the 1994 peso crisis placed him at the forefront of Latin America’s transformation into a region of open economies, and cemented his stature as a leading voice in economic-policy debates.

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