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Medical Community Recommends Rigorous Review of Proposed CVS-Aetna Merger

This week, the House Judiciary Subcommittee on Regulatory Reform, Commercial and Antitrust Law held a hearing titled “Competition in the Pharmaceutical Supply Chain:  The Proposed Merger of CVS Health and Aetna.” Many physician groups and the American Medical Association (AMA) are concerned that the acquisition of Aetna by CVS will negatively impact healthcare consumers.

In a statement for the record, the AMA indicates “the proposed merger has the potential to worsen competition in three poorly performing markets: Pharmacy Benefit Manager services; local health insurance markets; and many local retail pharmacy markets.” If the merger is finalized, it would combine one of the largest health insurers and biggest drugstore chain in the U.S., and would likely incentivize Aetna beneficiaries to fill prescriptions using CVS pharmacies rather than local pharmacies. While the AMA did not ask Congress to block the merger, they did request that a rigorous review of the merger be conducted. We will keep you updated.