The American Medical Association (AMA) released a statement Wednesday, August 8, urging the Department of Justice to block CVS Health’s proposed US$77 billion acquisition of insurance giant Aetna, due to concerns over potential anticompetitive practices. Others have also expressed their concern to the DOJ.
The AMA claimed 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 pharmacy benefit manager services, health insurance, and pharmacy services.
CVS announced 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 announced in a statement.
Full Content: Reuters
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