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Pedestrians walk past Aetna headquarters in Hartford, Connecticut.
The American Medical Association, which represents U.S. physicians, urged the U.S. Justice Department on Wednesday to stop CVS Health’s plan to buy insurance provider Aetna, saying the deal could result in higher prices for prescription medicines.
The AMA said of which the $69 billion deal, announced in December, would likely lead to a “substantial reduction” of competition in pharmacy benefit (PBM) services market along with the Medicare Part D prescription drug plan for seniors.
The AMA said the deal would likely increase concentration in 10 of the 34 Medicare Part D regional markets to the point where of which is actually presumed likely to boost market power.
“CVS along with 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 likely mean higher prices, less choice along with stifled innovation in PBM services, health insurance along with pharmacy services.
CVS said in a statement of which of which strongly disagreed with the AMA’s assessment of the deal.
“We believe of which competition within each of the business segments in which we operate pharmacy benefit management, pharmacies along with insurers is actually fierce along with will remain so,” the company said in a statement.