CVS has the potential to reshape the health plan market but they have a long way to go
Growing healthcare trends show demand from consumers for convenience. Insurance companies, physicians and pharmacies want to meet the demand for their patients and consumers. More and more providers are occupying retail spaces to use for clinics. Will the industry regulators tolerate mergers between big healthcare and pharmaceutical behemoths like CVS and Aetna? How far the industry and its regulators are willing to allow mergers at this size scale, is yet to be seen. In December 2017 a potential for a CVS-Aetna merger was announced and has forecast the merge to happen in the middle of 2018. “The deal echoes an industry movement toward care consolidation and the idea that patients can have all their needs addressed without the need for multiple trips. reports healthcareDive author (Jeff Byers) is concept behind the intent of the merger. CVS said that it intends to operate Aetna as a stand alone in the CVS health enterprise. What does this mean for Aetna insurance patients and doctors? Many senior company representatives are all saying the same thing – “these style of mergers will help decline the cost of healthcare”, there is no proof of that concept.
The industry regulators have not been very accepting with such sizable mergers. It is yet to be determined if the consumer is ready for this concept. HealthcareDive author Jeff Byers, gave us a little insight on how such concepts have been difficult to come to close- “…the deal could yet face antitrust scrutiny from regulators. A challenge from the U.S. Department of Justice ultimately broke up a planned merger between Aetna and Humana earlier this year. Antitrust concerns also forced Walgreens to scale back its planned acquisition of Rite Aid earlier this year. According to Wall Street Journal’s sources, CVS is preparing to retrofit portions of its pharmacies to become community health centers where consumers can ask questions about health coverage and costs. This idea aligns with recent comments from Aetna CEO Mark Bertolini, who has signaled a sweeping change within Aetna to become more of a healthcare company, instead of just an insurance company (healthcareDrive).
Is CVS acting in a way that could benefit the consumers?