GEOFFREY MANNE ON CVS/AETNA MERGER IN FIERCE HEALTHCARE
Geoffrey Manne was quoted in Fierce Healthcare on how the deal can be an experiment in the private sector for reform in the healthcare system:
The American Medical Association raised similar concerns in written testimony (PDF) submitted before the hearing, saying the deal poses anticompetitive concerns “unique to vertical mergers,” as a new competitor would have to enter the market in both insurance and PBM to compete with the combined CVS-Aetna.
“Close scrutiny is needed to determine if the ramifications of this massive merger will threaten the benefits of competition, including increased access and choice, lower prices and higher quality care for patients,” AMA President David O. Barbe, M.D., told FierceHealthcare in an emailed statement.
Other experts at the hearing had a more positive outlook on the deal, however. Geoffrey Manne, the executive director of the International Center for Law & Economics, said that the merger would allow the companies to greater innovate the stagnating healthcare space. The deal is an example of how the private sector can lead the way in shaking up healthcare, Manne said.
“The overriding theme of my testimony is that the proposed merger is a commendable effort to experiment with substantial reform of what we can all agree is a beleaguered healthcare system,” he said.