It’s good to have friends, right? Even when you’re a ginormous health insurance carrier like Aetna. Although rumored for months, it was JUST announced that one of Aetna’s longtime friends, CVS Health, is buying the company for $69 billion. (Yep, a pretty good friend to have).
The deal creates a new type of company that includes a health insurer, a retail pharmacy and a company that negotiates prescription drug prices with drugmakers called a pharmacy benefits manager. According to business news sources, it’s the biggest merger to happen in the US in 2017.
“This is a natural evolution for both companies as they seek to put the consumer at the center of health care delivery,” the companies said in a news release. FYI-the center is also the best place to stand when playing beach volleyball with friends (although not everyone knows that).
Now they say this is a new type of company, but both Anthem and UHC also own pharmaceutical companies. So is Aetna pioneering new ground here or just trying to keep up?
And the timing of this massive acquisition is no coincidence. Speculation that Amazon might be getting into the pharmacy business has been rampant for months, and the company’s notorious for stepping into new businesses and crushing the competition with low prices, fast delivery and its massive network of loyal shoppers.
At Moore Benefits, we like the move and hope this development helps contain costs through more competition, better integration and improved efficiency. Also, it will be very interesting to see how the walk-in CVS Minute Clinic locations will be part of the picture.
Ruling at employee benefits means staying on top of the latest news and this story is pretty big. If you or any of your employees have questions about ANY of this happy stuff, call my team of benefits experts and we’ll give you the latest info and the best service imaginable! Kinda like a good friend would do!
CVS Health is buying Aetna for $69 billion in 2017’s biggest deal