CVS Attempting $66 Billion Acquisition of Health Insurer Aetna

Judge Finds That Aetna Misled the Public About its Reasons for Quitting Obamacare 54 comments

An Anonymous Coward writes:

Aetna claimed this summer that it was pulling out of all but four of the 15 states where it was providing Obamacare individual insurance because of a business decision — it was simply losing too much money on the Obamacare exchanges.

Now a federal judge has ruled that that was a rank falsehood. In fact, says Judge John D. Bates, Aetna made its decision at least partially in response to a federal antitrust lawsuit blocking its proposed $37-billion merger with Humana. Aetna threatened federal officials with the pullout before the lawsuit was filed, and followed through on its threat once it was filed. Bates made the observations in the course of a ruling he issued Monday blocking the merger.

Aetna executives had moved heaven and earth to conceal their decision-making process from the court, in part by discussing the matter on the phone rather than in emails, and by shielding what did get put in writing with the cloak of attorney-client privilege, a practice Bates found came close to "malfeasance."

Source:

http://www.latimes.com/business/hiltzik/la-fi-hiltzik-aetna-obamacare-20170123-story.html

At what point does arbitrarily screwing with the healthcare of millions of people rise to the level of criminality?

Original Submission

$54 Billion Anthem-Cigna Health Insurer Merger Rejected by U.S. Judge 7 comments

takyon writes:

Two recent health insurance mergers have been blocked by judges:

A federal judge on Wednesday ruled against U.S. health insurer Anthem Inc's proposed $54 billion merger with smaller rival Cigna Corp, derailing an unprecedented effort to consolidate the country's health insurance industry.
The U.S. Justice Department sued in July to stop Anthem's purchase of Cigna, a deal that would have created the largest U.S. health insurer by membership, and Aetna Inc's planned $33 billion acquisition of Humana.
On Wednesday, Judge Amy Berman Jackson of U.S. District Court for the District of Columbia issued the ruling against Anthem's deal, saying that the merger would have worsened an already highly concentrated market and was likely to raise prices.
Last month, a different U.S. judge ruled against Aetna's proposed deal for Humana.
Government antitrust officials argued that both deals would lead to less competition and higher prices for Americans. The acquisitions would have reduced the number of large national U.S. insurers from five to three.

Also at Bloomberg, The Hill, and WSJ.

Original Submission

Health Insurer Aetna Accidentally Exposes Customers' HIV Statuses With Transparent Envelope Windows 39 comments

takyon writes:

A health insurer has accidentally exposed the HIV status of some customers with letters that can be partially read through a clear piece of plastic:

Health insurance company Aetna "stunned" some of its customers last month when it accidentally made their HIV statuses visible from the outside of envelopes, two legal groups said Thursday. The letters, which contained information about changes in pharmacy benefits and access to HIV medications, were sent to about 12,000 customers across multiple states, Aetna confirmed in a statement.
For some of these customers, a plastic window on the envelope exposed not only the patient's name and address, but also a reference to filling prescriptions for HIV medications. This meant that whoever picked up the mail that day — a family member, a friend, a postal worker — would have been able to see the confidential information, according to the Legal Action Center and the AIDS Law Project of Pennsylvania. It is not known exactly how many customers were affected.
Attorneys from both legal groups wrote to Aetna on Thursday demanding that the company immediately stop sending customers mail that "illegally discloses that they are taking HIV medication." It also demanded that the insurer take necessary measures to make sure such a breach doesn't happen again.
The legal groups wrote on behalf of Aetna customers in Arizona, California, Georgia, Illinois, New Jersey, New York, Ohio, Pennsylvania and the District of Columbia, according to their letter. The attorneys have so far received 23 complaints regarding the misstep, and more continue to come in, CNN reported.

The Legal Action Center and the AIDS Law Project of Pennsylvania provided this image of a Brooklyn, NY customer's letter, attached to their demand letter (PDF). The text reads: "Dear [REDACTED], The purpose of this letter is to advise you of options [...] Aetna health plan when filing prescriptions for HIV Medic [...] members can use a retail pharmacy or a mail order pharma".

Also at BBC, NPR, and STAT News.

Original Submission

Walmart Could Jump on the "Buy a Health Insurer" Trend with Humana Acquisition 25 comments

takyon writes:

Walmart could acquire the health insurer Humana, in a deal reminiscent of CVS's acquisition of Aetna:

Walmart Inc. is in preliminary talks to buy insurer Humana Inc., according to people familiar with the matter, a deal that would mark a dramatic shift for the retail behemoth and the latest in a recent flurry of big deals in health-care services.
It isn't clear what terms the companies may be discussing, and there is no guarantee they will strike a deal. If they do, the deal would be big: Humana currently has a market value of about $37 billion. It also would be Walmart's largest deal by far, eclipsing its 1999 acquisition of the U.K.'s Asda Group PLC for $10.8 billion. Walmart, which in addition to being the world's biggest retailer is also a major drugstore operator, has a market value of about $260 billion.
[...] Walmart has a vast pharmacy business, with locations in most of its roughly 4,700 U.S. stores and in many of it Sam's Club warehouse locations. Humana is a Medicare-focused insurer that could deepen Walmart's relationship with a key demographic—seniors—at a time when the retailer is being threatened by Amazon on several fronts.

Also at CNN.

Original Submission

CVS Partners with Teladoc Health to Offer Virtual Clinic Appointments 6 comments

takyon writes:

CVS dives deeper into medical services, offering virtual visits through Teladoc

CVS' MinuteClinics are going virtual. The drugstore chain plans to make video visits available nationwide by the end of the year through a partnership with Teladoc Health, CVS' latest pivot away from retail and toward health-care services. CVS already offers virtual appointments, branded as MinuteClinic Video Visits, in nine states and the District of Columbia.
MinuteClinics treat people with minor illness and injuries like coughs and rashes. These walk-in locations are a way to keep customers coming into CVS' stores as more shoppers buy everyday items on Amazon. Making it possible to visit a MinuteClinic without actually walking into one may hamper that, but it could help CVS reach more people.
With virtual visits, known in the industry as telehealth or telemedicine, CVS can reach people who may not be able to visit one of its roughly 1,100 locations. MinuteClinics are a key part of CVS' $69 billion acquisition of health insurer Aetna.

Also at USA Today.

Previously: CVS Attempting $66 Billion Acquisition of Health Insurer Aetna

Original Submission

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