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Policy
Disadvantaging Rivals: Vertical Integration in the Pharmaceutical Market
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Print:
In September, 2024, LDI Senior Fellow Abby Alpert, PhD briefed members of the Congressional Budget Office’s Panel of Health Advisors on the topic of vertical integration in the pharmaceutical market.
The briefing drew from Alpert’s research with a focus on Medicare Part D prescription drug plans and looked at the UnitedHealth-Catamaran merger in 2015 as a case study. Alpert found that premiums increased for non-vertically integrated insurers and that cost savings for the vertically integrated insurers were not passed through to enrollees in the form of lower premiums, and that vertical integration will reduce competition in the Medicare Part D market.
Views expressed by the researchers are their own and do not necessarily represent those of the University of Pennsylvania Health System (Penn Medicine) or the University of Pennsylvania.
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