For Immediate Release
September 26, 2018
Statement in Response to DFS
Letter Regarding CVS-Aetna
Statement attributable to:
Thomas Madejski, M.D.
thank New York Department of Financial Services Superintendent Maria Vullo for
issuing a letter expressing its ‘significant concerns’ with the proposal of
pharmacy and PBM behemoth CVS to acquire health insurer behemoth Aetna.
We agree with concerns she has raised that ‘the proposed transaction, if
approved, would create an incredibly large market share in the health care
market for the combined company, in an already concentrated marketplace, and is
likely to increase prices for members, and reduce options for consumers,
without any discernable increase in quality.’
We also agree with their
assessment that CVS ‘minute-clinics might provide unfair competition to other medical
providers and hospitals, which when combined with CVS’ proposed ownership of a major
health insurer creates significant concerns for consumer choice and cost.’
MSSNY has issued several
public statements raising numerous concerns about the adverse impact to patient
access to needed care, including at a NYS Assembly Insurance Committee hearing
earlier this year examining this proposed amalgamation of these companies,
These concerns include: reduced community pharmacy access; reduced health
insurer competition; increased prior authorization hassles; and marginalization
of physician-owned medical homes.
NY DFS joins several others who have issued detailed statements expressing
concerns with this proposed transaction.
August, California Insurance Commissioner Dave Jones submitted an extensive
letter to the US Department of Justice (DOJ) to block the merger
because of the potentially “significant
anti-competitive impacts on consumers and health care and health insurance
markets.” Commissioner Jones found that the proposed merger poses
competitive concerns in the Medicare Part D market, where both companies
currently compete, as well as in the highly-concentrated market for PBM
services, and in the retail pharmacy market.
The same month, the American Medical
submitted to the US DOJ its own comprehensive
analysis, raising similar concerns and urging the DOJ to work to
block the merger. And, earlier this year, the American Antitrust
Institute (AAI) raised similar concerns in its letter
to the US DOJ.
diverse perspectives have reached the same conclusion – that this merger would
have an adverse impact on patient access to care. It should not be
permitted to go forward.”
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Founded in 1807, the Medical Society of the State of New York is the state's principal non-profit professional organization for physicians, residents and medical students of all specialties. Its mission is to represent the interests of patients and physicians to assure quality healthcare services for all.
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