The American Medical Association (AMA) released a statement Wednesday, August 8, urging the Department of Justice to block CVS Health’s proposed US$77 billion acquisition of insurance giant Aetna, due to concerns over potential anticompetitive practices. Others have also expressed their concern to the DOJ.
The AMA claimed the deal would increase concentration in 10 of the 34 Medicare Part D regional markets to the point where it is presumed likely to increase market power.
“CVS and Aetna … operate as rivals in some of the same markets, raising substantial concerns,” said AMA President Barbara McAneny in a statement.
McAneny said the merger would mean higher prices, less choice, and stifled innovation in pharmacy benefit manager services, health insurance, and pharmacy services.
CVS announced in a statement that it strongly disagreed with the AMA’s assessment of the deal.
“We believe that competition within each of the business segments in which we operate – pharmacy benefit management, pharmacies and insurers – is fierce and will remain so,” the company announced in a statement.
Full Content: Reuters
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Meta’s $220 Million Fine in Nigeria Upheld by Competition Tribunal
Apr 27, 2025 by
CPI
DoorDash Proposes $3.6 Billion Acquisition of Deliveroo
Apr 27, 2025 by
CPI
US Judge Delays Approval of $2.8 Billion NCAA Settlement Over Athlete Rights
Apr 27, 2025 by
CPI
US Launches Criminal Antitrust Probe Into TP-Link’s Pricing Practices
Apr 27, 2025 by
CPI
CK Hutchison’s $22.8 Billion Port Sale to BlackRock Draws Chinese Scrutiny
Apr 27, 2025 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Mergers in Digital Markets
Apr 21, 2025 by
CPI
Catching a Killer? Six “Genetic Markers” to Assess Nascent Competitor Acquisitions
Apr 21, 2025 by
John Taladay & Christine Ryu-Naya
Digital Decoded: Is There More Scope for Digital Mergers In 2025?
Apr 21, 2025 by
Colin Raftery, Michele Davis, Sarah Jensen & Martin Dickson
AI In the Mix – An Ever-Evolving Approach to Jurisdiction Over Digital Mergers in Europe
Apr 21, 2025 by
Ingrid Vandenborre & Ketevan Zukakishvili
Antitrust Enforcement Errors Due to a Failure to Understand Organizational Capabilities and Dynamic Competition
Apr 21, 2025 by
Magdalena Kuyterink & David J. Teece