Statement attributable to:
President, American Medical Association
“The CVS-Aetna deal is popularly described as a vertical merger involving two large companies that don’t operate in the same markets. But in fact, CVS and Aetna do compete as formidable rivals in some of the same markets, raising substantial concerns that are specific to a horizontal merger.
“It is these competitive concerns that are the catalyst for today’s unprecedented evidentiary hearing called by U.S. District Judge Richard Leon to review the adequacy of the merger settlement brokered between CVS, Aetna and the U.S. Department of Justice.
“Aetna and CVS each have their own share of the Medicare Part D prescription drug plan (PDP) market, and have sought to win PDP customers from each other by competing on price and by improving the quality of their services and coverage.
“The AMA has concluded that a merger of these two rivals would harm competition and patients, even with the divestiture proposed in the merger settlement. The divestiture of Aetna’s prescription drug business to WellCare will reduce competition in the PDP market, rather than restore it to premerger levels.
“The AMA has long called for heightened scrutiny before proposed mergers take effect and markets are robbed of the intense competition that has benefited patients. The dynamic discussion during CVS-Aetna settlement hearing should prompt a renewed dialogue among regulators, policymakers, lawmakers, and others about the need for a better, more open and competitive marketplace to benefit patients and the physicians who care for them.”
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About the American Medical Association
The American Medical Association is the physicians’ powerful ally in patient care. As the only medical association that convenes 190+ state and specialty medical societies and other critical stakeholders, the AMA represents physicians with a unified voice to all key players in health care. The AMA leverages its strength by removing the obstacles that interfere with patient care, leading the charge to prevent chronic disease and confront public health crises and, driving the future of medicine to tackle the biggest challenges in health care.
