In: Accounting
summary (conclusion) of cvs and aetna merger ?
CVS and AETNA Merger:
The combined CVS and Aetna would result in, expected increase in premiums due to substantial increase in market concentration of Medicare part D regional markets. The doctors group also said drug spending and out of pocket costs would increase for patients, as CVS and Aetna fortify their dominent positions in health insurance, pharmaceutical and benefit management, retail and specialty pharmacy markets that already lack competition.
-> The merger is anticompetitive in the generally highly concentrated markets for health insurance.
-> The merger is anticompetitive in the PMB market.
-> The merger is anticompetitive in the local pharmacy markets.
For all the reasons expressed by the health economists and other experts both at June hearing and in their reports accompanying this statement, it is the AMA's opinion that this merger would likely substantially lesson competition in many markets. The AMA therefore respectfully requests that the department urge the DOJ to block the merger.