Labor group asks for review of CVS/Caremark merger

WASHINGTON, Sept 2 (Reuters) - A labor consortium asked on Wednesday for U.S. antitrust regulators to take another look at the 2007 merger of CVS (CVS.N) and Caremark, saying the deal has led to higher drug prices.

Change to Win, made up of the Service Employees International Union and six other unions with six million members, asked the Federal Trade Commission to reexamine the merger of drugstore company CVS with pharmacy benefit manager Caremark.

"The merged entity presents potential risks in such vital areas as patient privacy, value to health plans, conflicts of interest, and quality of service," said Anna Burger, secretary-treasurer of the service workers union.

The group accused CVS's new pharmacy benefits practice of steering patients to its own drug stores, among other practices.

Independent pharmacists have already asked for a firewall to be erected between CVS's retail pharmacy business and its pharmacy benefits business. CVS has more than 6,900 stores.

In July, five U.S. senators wrote to FTC chairman Jon Leibowitz asking him to look into allegations that CVS inappropriately used its pharmacy benefits business to win clients and squeeze smaller competitors. The five senators were Roger Wicker, a Republican, and Democrats Byron Dorgan, Russell Feingold, Amy Klobuchar and Mark Pryor.

CVS denied the labor consortium's allegations.

"For more than two years, CtW has been making false statements about our company and mischaracterizing our business practices because we refuse to waive the right of our employees to vote confidentially in union elections," said CVS in an email statement.

'The CVS Caremark merger has enhanced the ability of our company to offer payers and consumers more accessible, effective and affordable pharmacy health care services. CtW's allegations that our business practices somehow violate antitrust, patient privacy or other applicable health care laws are patently false and misleading." (Reporting by Diane Bartz; editing by Andre Grenon)