The American Medical Association, which represents U.S. physicians, urged the U.S. Justice Department on Aug. 8 to stop CVS Health’s plan to buy insurance provider Aetna, saying the deal could result in higher prices for prescription medicines.
The AMA said that the $69 billion deal, announced in December, would lead to a “substantial reduction” of competition in pharmacy benefit (PBM) services market and the Medicare Part D prescription drug plan for seniors.
The AMA said the deal would increase concentration in 10 of the 34 Medicare Part D regional markets to the point where it is presumed likely to increase market power.
“CVS and Aetna … operate as rivals in some of the same markets, raising substantial concerns,” said AMA President Barbara McAneny in a statement.
McAneny said the merger would mean higher prices, less choice and stifled innovation in PBM services, health insurance, and pharmacy services.
CVS said in a statement that it strongly disagreed with the AMA’s assessment of the deal.
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