This week, the American Medical Association (AMA) sent a letter to the U.S. Department of Justice (DOJ) with analysis highlighting that the proposed CVS-Aetna merger will substantially reduce competition in health insurance markets, to the detriment of patients, and therefore should be blocked. According to the 29-page analysis compiled by the AMA, the merger is likely to reduce competition in 30 of 34 Medicare Part D regional markets. Additionally, “in 10 of 34 Medicare Part D regional markets, the deal would exceed a threshold set by federal antitrust guidelines for a merger that should be presumed likely to enhance market power.” This is detrimental to consumers as it will raise price and reduce competition.
As a reminder, if the merger is completed, 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 other local pharmacies. We will keep you updated.