U.S. physician’s group opposes merger of CVS and Aetna

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Michael Nagle | Bloomberg | Getty Photographs

Pedestrians stroll previous Aetna headquarters in Hartford, Connecticut.

The American Medical Affiliation, which represents U.S. physicians, urged the U.S. Justice Division on Wednesday to cease CVS Well being’s plan to purchase insurance coverage supplier Aetna, saying the deal might lead to greater costs for prescription medicines.

The AMA mentioned that the $69 billion deal, introduced in December, would result in a “substantial discount” of competitors in pharmacy profit (PBM) providers market and the Medicare Half D prescription drug plan for seniors.

The AMA mentioned the deal would enhance focus in 10 of the 34 Medicare Half D regional markets to the purpose the place it’s presumed more likely to enhance market energy.

“CVS and Aetna … function as rivals in among the identical markets, elevating substantial issues,” mentioned AMA President Barbara McAneny in a press release.

McAneny mentioned the merger would imply greater costs, much less selection and stifled innovation in PBM providers, medical insurance and pharmacy providers.

CVS mentioned in a press release that it strongly disagreed with the AMA’s evaluation of the deal.

“We imagine that competitors inside every of the enterprise segments wherein we function pharmacy profit administration, pharmacies and insurers is fierce and can stay so,” the corporate mentioned in a press release.

Supply hyperlink – https://www.cnbc.com/2018/08/08/us-doctors-group-opposes-merger-of-cvs-and-aetna.html

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