Report:DOJ Approves of CVS-Aetna Merger

According to trade publication Reorg Research,the relevant US Department of Justice staff will not oppose the merger of drugstore chain/pharma benefits manager CVS Health with health insurer Aetna,sending a sigh of relief through the sector and an uptick in share prices.The 69 billion dollar transaction is a move seen at least partly as a reaction to the entry of electronic commerce giant Amazon into the health care field.Another possible reaction was by health insurer Cigna as it seeks to merge with pharma benefits manager Express Scripts.
In January 2018,Amazon,Berkshire Hathaway and JP Morgan Chase,which collectively employ more than 500,000 people,announced they are forming a joint enterprise to provide care for staff at a reasonable cost by enabling simplified,high quality and transparent health care through technology.JP Morgan Chase CEO Jamie Dimon explained:
The three of our companies have extraordinary resources,and our goal is to create solutions that benefit our US employees,their families,and,potentially,all Americans.*
Reorg Research provides automated docket updates;breaking news;and analysis for distressed debt investors;lawyers;and restructuring professionals.The New York-based company seeks to provide independent,insightful and timely market intelligence and analysis for better business and investment decisions.*
The DOJ staffers will submit their recommendation to their superiors for final approval at the end of July.*
Aetna Inc (AET),Cigna Inc (CI),CVS Health (CVS),Express Scripts (ESXR)

New CDC Figures Show Alarming Increase in Autism-plus who makes drugs to treat it

New figures the CDC has derived from its autism surveillance network show a striking increase in diagnoses of the disorder.Now one in 88 children is believed to be autistic,a 23% increase from 2006-08.One in 54 boys are autistic.There has been a 78% increase in autism cases since 2002.
At least some of the growth is down to better awareness of autism-especially in minority communities such as the African American and Hispanic.Another reason may be the inclusion of cases that once would have been labeled mental retardation or something else.
Diagnosis of autism is pegged on the three criteria of social,communication and attention shifting deficits.Skills in these areas have not developed naturally in autistic children,and must be painstakingly taught them individually by a method called applied behavioral analysis,which drives the cost of treatment way up.
The etiology or cause of the disorder remains a mystery,but research is looking at environmental pollution,medication and nutrition as possibilities.There have been a lot of problems getting health insurers to cover full treatment programs for autism.A total of 34 states have put laws on the books requiring insurers to cover at least some of the costs.The Harvard School of Public Health estimates it costs 3.2 million dollars to treat an autistic person over a lifetime;the societal cost is 35 billion dollars a year-a huge burden that is only ballooning even more each year.
Insurers contend autism is a developmental disorder,so the education system should be picking up the tab.
Among those making drugs for treating autism symptoms are Shire Pharmaceuticals(SPHGY);Teva Pharmaceuticals(TEVA);Pfizer(PFE);Novartis(NVS);and Johnson and Johnson(JNJ).

WellPoint Anxious For Clarity

As the nation's largest health insurer,WellPoint is anxious to get certainty about health care reform and economic recovery.It does appear that we've hit the floor at this point,according to Chief Financial Officer Wayne S. DeVeydt,and we might see improvement in the next quarter.The 14% increase in WellPoint's premiums in California is not sustainable,however.They've got to get the care costs down.The key is avoiding duplicate procedures.
The health care reform law is weighing on WellPoint's stock.They have to get better clarity about it soon.Nonetheless,the firm's net headcount isn't dropping.It employs about 42,000 Associates.
Based in Indianapolis,WellPoint operates as a licensee of the Blue Cross and Blue Shield Association in 14 states,with 33.5 million members.It has been honored by Fortune magazine as a Most Admired Company in its field for 2007,and has also received a workplace diversity award.Its earnings per share were up for Q2,and it raised its full year guidance as well.WellPoint buys back billions of dollars worth of shares to support its stock.Angela F. Braly is President,Chair and CEO of the insurer.
WellPoint(WLP)

Study Shows Canadians Healthier

A Kaiser Permanente researcher,David Feeny,and his American colleagues have concluded that older Canadians experience better health than their American peers.Published in the journal "Population Health Metrics,"the study,based on data from a joint Canadian/U.S. survey from 2002-2003,suggests the longer lifespan of Canadians may be related to two potential factors:access to health care and the prevalence of poverty.While Canadians have universal access to health care,Americans do not;and,the gap between rich and poor is not as wide in Canada as in the U.S.Discriminating between the possible factors would require further study,Mr.Feeny observes.
In any event,Canadians over 40 have,on average,2.7 more years of better health than their southern neighbors.The life expectancy and overall health-related quality of life appears to be greater for Canadians,and factors that account for the difference may include their access to health care over the full lifespan and lower levels of social and economic inequality,especially among the elderly.
The new health insurance reform law in the U.S. is intended to greatly broaden access to care,bringing tens of millions more Americans into the health care system,and improve the quality of care for many of those already within it.
It has long been noted in the media that the U.S. lags behind many other countries in several health care metrics.

Health Uncle

Welcome to a new feature.It's the new year,so it's a good time to try a change.With all the stress in the financial markets,health has never been more relevant.All of us are under increased risk,so a little more light on that topic,or at least a reminder,may be beneficial.The U.S. House of Representatives has just passed a bill that would enroll more children in health insurance.The SCHIP program would grow from 7 to 11 million children.By catching dangerous conditions in childhood,it would result in less costs later on,than if these children had been left to develop their ailments into adulthood-if they made it that far.That would make us all relieved.It would ease our financial worries,and save the innocent from suffering.Hopefully the U.S. Senate will concur and pass the legislation as well.