American Medical Association says CVS Health, Aetna merger would hinder competition in many markets
AMA President Barbara McAneny says antitrust regulators have powerful reasons to block the deal.
After conducting what it described as an exhaustive analysis, the American Medical Association and is pushing regulators to block the proposed merger of CVS Health and Aetna.
The AMA cited "evidence indicating the merger's likely anticompetitive effects on Medicare Part D, pharmacy benefit management services, health insurance, retail pharmacy, and specialty pharmacy."
The announcement was made by AMA President Barbara McAneny, M.D., in testimony at a hearing held by the California Department of Insurance.
"After very careful consideration over the past months, the AMA has come to the conclusion that this merger would likely substantially lessen competition in many health care markets, to the detriment of patients," McAneny said. "The AMA is now convinced that the proposed CVS-Aetna merger should be blocked."
The AMA's examination of the merger started back in December and sought the views of experts in health economics, health policy and antitrust law.
The AMA will file a post-hearing memorandum outlining its concerns later this month, including what it views as the merger's potential negative consequences for health care access, quality and affordability. Those include: premium hikes due to an increase in market concentration in 30 of 34 Medicare Part D regional markets; possible increases in drug spending and out-of-pocket costs for patients; and diminished competition in health insurance markets that will spawn higher premiums and a drop in the quality of insurance.
"Federal and state antitrust officials now have powerful reasons to block this harmful merger and foster a more competitive marketplace that will operate in patients' best interests," said McAneny.
Twitter: @BethJSanborn
Email the writer: beth.sanborn@himssmedia.com
