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

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Michael Nagle | Bloomberg | Getty Pictures

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 end in greater costs for prescription medicines.

The AMA stated 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 stated the deal would improve focus in 10 of the 34 Medicare Half D regional markets to the purpose the place it’s presumed prone to improve market energy.

“CVS and Aetna … function as rivals in a number of the identical markets, elevating substantial considerations,” stated AMA President Barbara McAneny in a press release.

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

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

“We consider that competitors inside every of the enterprise segments by which we function pharmacy profit administration, pharmacies and insurers is fierce and can stay so,” the corporate stated 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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