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


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.”

Legal warning !
The information, comments and suggestions there are not covered by investment advice. It is based on the author's personal opinions. These views may not fit your financial situation and risk and return preferences. For this reason, based solely on this information, investment decisions may not have the appropriate consequences for your expectation. Our Site is not responsible for any direct or indirect damages incurred by the investors as a result of the use of the information on the Site, deficiencies in the sources, damages incurred by profit, moral damages, or damage to third parties.