Statement attributable to:
Patrice A. Harris, M.D., M.A.,
President, American Medical Association
“The evidence presented by the American Medical Association (AMA) to U.S. District Judge Richard Leon indicates that the merger of CVS Health and Aetna, and the proposed divestiture of Aetna’s prescription drug plan (PDP) business to WellCare, will harm competition and raise premiums in the PDP market.
“Before the merger, Aetna and CVS competed head-to-head on price, quality, and coverage to win PDP customers from each other. There are no merger-specific efficiencies in the PDP market that would justify the harmful anticompetitive effects of a merger that would eliminate this rivalry.
“AMA evidence also indicates that the divestiture of Aetna’s PDP business will not restore competition to premerger levels in several regions. In addition, the weight of economic analyses predicts that this merger is likely to raise premiums for a vulnerable population served by the PDP market. Thus, the merger and divestiture are not in the public interest, and the court should refuse to approve the antitrust settlement proposed by the Department of Justice.”
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