By Shelby Livingston | November
28, 2018
Nearly one year after
agreeing to merge in a bid to reinvent healthcare for Americans, CVS Health and
Aetna sealed the deal on Wednesday, bringing together one of the nation's
largest pharmacy chains and one of the largest health insurers.
"Today marks the start of a new day in health care and a transformative moment for our company and our industry," CVS Health President and CEO Larry Merlo said in the announcement. "By delivering the combined capabilities of our two leading organizations, we will transform the consumer health experience and build healthier communities through a new innovative health care model that is local, easier to use, less expensive and puts consumers at the center of their care."
The $69 billion merger scored approval from U.S. Justice Department antitrust enforcers and insurance regulators in 28 states, despite warnings from provider groups, patient advocates, economists and antitrust experts that the combination could harm competition and patients. New York regulators were the last to sign off on the deal on Monday.
The companies say they will together offer better, cheaper, integrated healthcare. CVS walk-in clinics would become community healthcare hubs where pharmacists would manage patients' care and counsel them between primary care visits.
"Today marks the start of a new day in health care and a transformative moment for our company and our industry," CVS Health President and CEO Larry Merlo said in the announcement. "By delivering the combined capabilities of our two leading organizations, we will transform the consumer health experience and build healthier communities through a new innovative health care model that is local, easier to use, less expensive and puts consumers at the center of their care."
The $69 billion merger scored approval from U.S. Justice Department antitrust enforcers and insurance regulators in 28 states, despite warnings from provider groups, patient advocates, economists and antitrust experts that the combination could harm competition and patients. New York regulators were the last to sign off on the deal on Monday.
The companies say they will together offer better, cheaper, integrated healthcare. CVS walk-in clinics would become community healthcare hubs where pharmacists would manage patients' care and counsel them between primary care visits.
Combined
funds and advanced analytics would allow them to tackle the social determinants
of health and manage the care of chronically ill patients, where the bulk of
healthcare spending lies. By year two, the companies expect the combination to
yield savings of $750 million from streamlining administrative functions,
negotiating better pricing and managing care more effectively.
Many industry experts have been skeptical of the benefits of the merger, however, and fear the consolidation could harm competition and raise prices for consumers. In the announcement Wednesday, CVS responded to some critics' concerns in saying the combined company's products and services will be broadly available to the marketplace, regardless of a consumer's insurer, pharmacy or pharmacy benefit manager, while retail and specialty pharmacy services would continue to be available to other health plans.
Story in Progress...
Many industry experts have been skeptical of the benefits of the merger, however, and fear the consolidation could harm competition and raise prices for consumers. In the announcement Wednesday, CVS responded to some critics' concerns in saying the combined company's products and services will be broadly available to the marketplace, regardless of a consumer's insurer, pharmacy or pharmacy benefit manager, while retail and specialty pharmacy services would continue to be available to other health plans.
Story in Progress...
Shelby
Livingston is an insurance reporter. Before joining Modern Healthcare in 2016,
she covered employee benefits at Business Insurance magazine. She has a master’s
degree in journalism from Northwestern University’s Medill School of Journalism
and a bachelor’s in English from Clemson University.
https://www.modernhealthcare.com/article/20181128/NEWS/181129943?utm_source=modernhealthcare&utm_medium=email&utm_content=20181128-NEWS-181129943&utm_campaign=mh-alert
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