American Medical Association Claims CVS-Aetna Merger Will Hike Drug Prices

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The American Medical Association, which represents U.S. physicians, urged the U.S. Justice Department on Wednesday to stop CVS Health Corp.’s plan to buy insurance provider Aetna Inc., 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.
AMA, agreement, 34 Medicare Part D said that it would increase concentration in the 10th region of the market where the probability of increasing market power is high.

“CVS and Aetna … are operating as competitors in some of the same markets, creating significant concerns,” said AMA President Barbara McAneny.

McAneny said the union would mean higher prices, less options and hoarse innovation in PBM services, health insurance and pharmacy services.

In his CVS statement, he said he was strongly opposed to the AMA’s assessment of the deal.

The company said, “We think that competition in every sector we operate, such as pharmacy benefit management, pharmacy and insurance, is severe and we expect it to stay that way.”

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