U.S. HOUSE JUDICIARY COMMITTEE REVIEW OF CVS-AETNA MERGER


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Medical Society of the State of New York

865 Merrick Ave. Westbury, NY 11590-9007
www.mssny.org
Communications Division
Telephone: (516) 488-6100

For Immediate Release
February 27, 2018

 

STATEMENT BY MSSNY PRESIDENT DR. CHARLES ROTHBERG
REGARDING U.S. HOUSE JUDICIARY COMMITTEE REVIEW OF CVS-AETNA MERGER

“It is incredibly important for federal and state oversight bodies to undertake a thorough review of the potential impact of the acquisition of Aetna by CVS.  If approved, this transaction would produce an enormous consolidation in the health care industry that will undoubtedly have a profound impact on where patients received their needed care and medications.

We share the concerns expressed by the American Medical Association (AMA) regarding this potential enormous consolidation.

CVS already owns over 500 retail stores in New York State, while Caremark is the second largest PBM in the country.   Meanwhile, according to the 2016 AMA Competition in Health Insurance report, Aetna is the fourth largest insurer in New York State, insuring a very significant portion of the commercial health insurance market. Certainly, it is not hard to envision that, were this immense transaction to be approved, other similar merger and acquisitions would follow.

We are very concerned that this proposed transaction could exacerbate the already fragile nature of New York’s healthcare delivery system.  Our concerns are on a number of fronts.  First, we are very concerned that the transaction will reduce choice of pharmacy for our patients, as it may become harder for non-CVS pharmacies to be incorporated into the CVS-Aetna pharmaceutical network.  Moreover, it could enable the Caremark PBM to impose even more burdensome prior authorization hassles for physicians and their staff as a pre-condition for patients receiving needed prescription medications.   Perhaps of greatest concern, we are concerned that this transaction will lead to an explosion of so-called “Minute Clinics”, to be owned by an insurance company that would have great incentive to steer patients to these sites instead of a community based primary care practice that typically serves as a patient’s medical home.   This will result in the fragmentation of patient care instead of helping to better coordinate it.

These concerns have been magnified as a result of the recent investigation by several states, as reported by CNN, into whether Aetna may be inappropriately denying coverage for patient care.

Taking all these factors together, New York’s physicians have very strong concerns with this proposed enormous consolidation in our health care industry, which could have adverse consequences to our patients.”

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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. For more information, visit www.mssny.org.

Media Contact:
Julie Vecchione | Communications and Marketing Manager
Medical Society of the State of New York
516.488.6100 x340 | jvecchione@mssny.org