American Medical Association Claims CVS-Aetna Merger Will Hike Drug Prices
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.
“We believe that competition within each of the business segments in which we operate – pharmacy benefit management, pharmacies and insurers – is fierce and will remain so,” the company said in a statement.
(Reporting by Diane Bartz; Editing by David Gregorio)