Department of Justice approves Cigna-Express scripts merge



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Federal officials gave the green light on Monday to the merger project between Cigna, one of the largest health insurers in the country, and Express Scripts, a major pharmaceutical benefits manager.

The $ 52 billion deal, announced last March, is one of two proposed deals involving pharmaceutical companies before the Department of Justice. Last December, Aetna, another giant insurer, announced its intention to unite with CVS Health, the pharmacy chain that is the largest independent competitor of Express Scripts, in a $ 69 billion deal.

The Justice Department continues to review the agreement between Aetna and CVS, although both companies are expected to receive a green light shortly.

These combinations of powerful health insurance companies with the country's leading pharmacy benefit managers are emerging as established healthcare industry players are desperately seeking ways to defend themselves against potential intruders such as Amazon. .

The agreements also represent an acknowledgment by established companies that they must modify their business model based on customer demands, so that they can better control prices. Both insurers and drug benefit managers are intermediaries for employers and governments, and the proposed mergers are aimed at convincing their clients that they are working to reduce costs.

The well-established industry has also been shaken by a new alliance between Amazon giants, Berkshire Hathaway and JPMorgan Chase, who have created a separate health care entity, frustrated with major insurers and leading pharmacy managers. These companies want to develop new ways to reduce seemingly complex and costly coverage systems for their employees.

The decision of the federal antitrust authorities to authorize Cigna to purchase Express Scripts testifies to the acceptance of so-called vertical mergers in which businesses, although in the same industry, are not directly in competition. The country's major health insurance companies, including Aetna and Cigna, had already tried to combine with other insurers, but these transactions were blocked due to concerns about the potential impact on consumers.

In approving the Cigna-Express script agreement, federal officials emphasized that they did not believe that the merger would have the effect of curbing competition in the pharmacy sector, which would be detrimental to consumers.

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