Healthcare Consolidation
CVS-Aetna Merger: Competition and Patient Care Concerns Raised at CDI Hearing
Source Fellow June 26, 2018
By: Megan O’Leary, Student Fellow CVS Health and Aetna Insurance defended their proposed vertical merger to the California Department of Insurance (CDI) on June 19. The Source attended the hearing and brings this report regarding the prospects and impact of the planned merger. Pursuant to the California Insurance Code, Commissioner Dave Jones was able to call the public hearing as it involves an Aetna subsidiary based in California. While the commissioner does not have direct approval authority over the merger, his input could have an impact on how other states …
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California Legislative Beat: Transformative Healthcare Bills of 2018 (Pt. 1)
Sammy Chang, Health Policy Researcher June 21, 2018
Year two of California’s 2017-2018 legislative session has been an active one. As lawmakers work diligently, The Source will take a brief look at some 2018 bills that can potentially change the California healthcare landscape. SB 1021: This bill removes the sunset provision for AB 339 (2015), which was enacted to cap cost sharing for a covered outpatient prescription drug at $250/$500 per 30-day supply.[1] Furthermore, the bill codifies the regulation that “prohibits an enrollee or insured from being charged more than the retail price for a prescription drug …
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California Legislative Beat: Noteworthy 2017 Bills Still Pending That Should be Passed
Sammy Chang, Health Policy Researcher May 24, 2018
As year two of the California legislative session goes into full swing, a couple of bills introduced in 2017 are still active and waiting to be passed. This month’s post will look at four active 2017 bills that should be considered for passage. SB 199: This bill authorizes the creation of an advisory committee to research and develop recommendations on the creation of a database to be titled California Health Care Cost, Quality, and Equity Atlas. This bill is the first step to creating a statewide database that would collect …
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Litigation and Enforcement Highlights – May 2018
Amy Y. Gu, Managing Editor May 15, 2018
Several major court decisions were handed down last month that may leave lasting impacts in terms of price and competition in the healthcare industry. Specifically, the 4thCircuit Court of Appeals ruled Maryland’s Price Gouging Law unconstitutional, while the Supreme Court upheld inter partes review, a controversial patent review process. In antitrust enforcement, the Justice Department began its review of the Cigna-Express Scripts merger. 4thCircuit Strikes Down Maryland Price Gouging Law In a significant victory for the pharmaceutical industry, the 4thU.S. Circuit Court of Appeals found Maryland’s landmark 2017 law, …
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Litigation and Enforcement Highlights – April 2018
Amy Y. Gu, Managing Editor April 10, 2018
This month we saw increased activity in state and private antitrust litigation. Earlier in April, we blogged about an antitrust lawsuit brought by California’s Attorney General against Sutter Health, accusing the health system of anticompetitive conduct that allegedly drove up healthcare prices across the state. In private antitrust litigation, Blue Cross/Blue Shield suffered a significant blow in a major lawsuit in Alabama federal court, while an Illinois judge ordered plaintiffs in a hospital class action suit to find new representatives. Meanwhile, on the regulatory front, merger mania continued as two additional proposed …
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California Attorney General Sues Sutter Health for Anticompetitive Practices
Amy Y. Gu, Managing Editor March 30, 2018
See UFCW & Employers Benefit Trust v. Sutter Health case page. California’s attorney general announced today that his office has filed an antitrust and unfair competition lawsuit against Sutter Health. Attorney General Xavier Becerra said at a press conference that the state’s complaint follows a six-year statewide investigation that found the Northern California hospital giant engaged in anticompetitive conduct that drove up healthcare prices for patients and employers in the state. Specifically, the complaint alleges that Sutter engaged in “all-or-nothing” contracts with health insurers that restricted insurers from providing low-cost plan options …
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Litigation and Enforcement Highlights – March 2018
Amy Y. Gu, Managing Editor March 13, 2018
In this edition of the Source Litigation and Enforcement Highlights, we review 1) a pair of healthcare mergers approved by antitrust regulators, 2) the DOJ’s antitrust settlement with the last of four Michigan hospitals, and 3) another challenge against an insurer for overcharging for prescription drugs. Federal and State Regulators Greenlight Healthcare MergersIn the midst of a wave of healthcare merger deals across the country, state and federal regulators joined the nationwide trend by approving a pair of mergers last month.In early February, both the Federal Trade Commission (FTC) and the …
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The Source Roundup: March 2018 Edition
Source Fellow March 1, 2018
By: Katie Beyer, Student Fellow Happy March! In this edition of the Source Roundup, we cover four academic articles and reports from January and February. The topics this month include: (1) recent state solutions to reduce prescription drug costs, (2) legal challenges to Maryland and Nevada’s prescription drug laws, (3) how the CVS-Aetna deal could reduce healthcare costs, and 4) economic and demographic trends behind increasing healthcare spending. Recent State Solutions Aimed at Reducing Prescription Drug Costs Medicaid spending on outpatient drugs increased 25%, from $22.4 billion in 2013 to …
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Special California Assembly Hearings Provide Insights and Solutions to Increasing Healthcare Costs
Sammy Chang, Health Policy Researcher February 20, 2018
After the public outcry following last year’s tabling of SB 562 (Lara), which would have created a single-payer program in California, a special California Assembly committee was formed. The Assembly Select Committee on Health Care Delivery Systems and Universal Coverage began hearings in late October 2017 and adjourned on February 7th, 2018. While much of the hearings was a crash course on health insurance, some of them addressed high healthcare prices. This month, we will summarize two of the hearings that focused on understanding the origins of high healthcare pricing …
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Litigation and Enforcement Highlights – February 2018
Amy Y. Gu, Managing Editor February 8, 2018
In this edition of the Source Litigation and Enforcement Highlights, we review 1) an action against Allergan’s anticompetitive practice concerning its dry eye treatment Restasis, 2) the final conclusion to a highly contested West Virginia hospital merger, 3) an antitrust suit between Marion Healthcare and Southern Illinois Healthcare, and 4) another proposed Partners Healthcare merger. Shire Defends Its Antitrust Suit Against Allergan In response to Allergan’s motion to dismiss an antitrust suit filed in New Jersey federal court, Shire filed a brief on January 24, 2018, blasting Allergan’s claim that …
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