Merger of CVS & Aetna: An Early Christmas Gift

As of Christmas Eve, the United States District Court ruled in favor of the fusing of CVS Pharmacy and Aetna Healthcare. Since last year viewers of the dealings have sat back patiently waiting on the decision. Now with a final court decision, CVS/AETNA now can move forward with integration. Today, we will cover the merger effects and what to expect in the future from the new company.

New Oppurtunities

CVS announced purchasing Aetna last year, a deal of 69 billion acquisition including a $77 billion debt. The decision on the merger has come through business opportunities between the two companies over the span of some years. Coordinating pharmacy and health benefits together removes perverse incentives that arise when drug and nondrug benefits are split across orgs. This creates openings and more opportunities for the customer. Reports from Max Nisen of Bloomberg, believes the merger creates a company of nearly 10,000 stores and 1,100 clinics with Aetna’s 22 million enrollees. 

A Word From The CEO

CVS Health Ceo Larry Merlo believes the industry does not put enough of a focus on outcomes/managing patients. With this merger, he hopes to become more patient-friendly and focused on the services offered at each of his stores. Over the next few months CVS Stores nation wide will undergo updates and modifications offering better clinical services. “We look at the industry and we define it as one that’s fragmented, and often times care is uncoordinated,” states Merlo. With understanding the problem and a goal to improve the system The merger might be able to do just that.

Future of the Merger

How will CVS decide to move forward besides mere upgrades? One main challenge CVS will have to deal with is delivering quality care on a greater scale that’s cost-efficient. They will also need to figure out how to manage the new clients coming on from the merger. There is also the fact that the debt accumulated from the merger will limit how fast the company expands. Stay in the loop throughout 2019 as more information about the merger begins to expand.

Since insurance is often times overwhelmingly confusing, we want to shed light on this industry by answering YOUR questions.  If you have any questions or concerns, comment below and your question may be the topic of our next video! If you have any questions, please call us toll-free (888) 539-1633.

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