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The Coming Earthquake

Date Published: January 27, 2018

Lina Khan quoted by Axios

Amazon, Khan told me, should be viewed “as an infrastructure company.” And as a group, big tech “are utilities on which other companies depend,” equating to the 19th century railroads, which their owners exploited to outsized profit advantage because they could.

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Why CVS Wants to Buy Aetna

Date Published: January 27, 2018

Brian S. Feldman quoted by The Atlantic

Brian Feldman, of the antitrust research group Open Markets Institute, argues that mergers in the past few decades have “created a funhouse mirror situation—the drug industry’s incentives have become incredibly warped.” The market for drugs is shaped by five different types of companies: drug manufacturers, wholesalers, pharmacies, insurers, and pharmacy benefit managers (which function as middlemen between manufacturers and insurers). If the CVS-Aetna deal goes through, Feldman argues, CVS would have a foothold in every category but manufacturing, meaning that it would encounter competition from other companies less often.

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Health Insurance Deadline 2017: What to know about marketplace plans on the last day to apply

Date Published: January 27, 2018

Phil Longman quoted by Mic

Some antitrust experts are skeptical of whether those benefits will be passed onto consumers. Phillip Longman, policy director at the Open Market Institute and a health policy lecturer at Johns Hopkins University, said the Aetna-CVS merger could create new problems along with the ones it solves. While its scale could indeed deliver savings to consumers, Longman said, that’s only if it’s accomplished without creating a monopoly — which he fears CVS might become if it ends up pushing out other drugstore chains.

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