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Why CVS Wants to Buy Aetna

Read on 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.

See the rest of Brian S. Feldman's work

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In America today, wealth and political power are more concentrated than at any point in our country’s history.

The Open Markets Institute, formerly the Open Markets program at New America, was founded to protect liberty and democracy from these extreme -- and growing -- concentrations of private power.

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