Dear Connecticut: CVS Can't Afford Aetna. Sincerely, New York

EBITDA is a standardized measure of operating income.

What Does Maria Vullo Have to Do With This?

Wade has jurisdiction over any efforts by Aetna to transfer control over its Connecticut-domiciled insurance operations to another party.

Vullo’s department has jurisdiction over control over an Aetna subsidiary based in New York state, Aetna Health Insurance Company of New York, and several other Aetna units that do business in New York state.

What Else Is Maria Vullo Saying?

Vullo contends else where in her letter that:

• CVS should provide specific commitments for passing on deal benefits to Medicare Part D drug plan enrollees, not just claims that the deal will lead to operational synergies.
• CVS could create drug benefits rules for Aetna plan members that would increase CVS pharmacies’ market share and lead to higher net drug prices for consumers.
• CVS might help policyholders by setting up more clinics inside its stores, but that could create unfair competition for other types of medical providers and hospitals, and, possibly, hurt overall health care system employment.
• CVS could use enrollee data from insurers other than Aetna to help Aetna. If the deal goes through, CVS has to agree to safeguards to keep that from happening, Vullo says.

What Are CVS and Aetna Doing About Regulators’ Market Share Concerns?

CVS and Aetna announced Wednesday that Aetna has arranged for WellCare Health Plans Inc., a large player in the Medicare plan market, to acquire Aetna’s entire stand-alone Medicare Part D prescription drug plan business, effective Dec. 31, if CVS has completed the Aetna deal by then.

CVS said it and Aetna still hope to complete the deal”early in the fourth quarter of 2018.” The fourth quarter starts Monday.

Resources

A copy of Vullo’s letter is available here.

The Connecticut Insurance Department docket for the CVS-Aetna deal is available here.

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