CVS Health is shopping Aetna for $69 billion in 2017’s biggest deal


CVS Health CEO
CVS Health President and
CEO Larry J. Merlo

Reuters

  • CVS Health is shopping Aetna for $69 billion.
  • The understanding that was rumored for months should finally be
    announced on Sunday.
  • The partnership could reshape a American health care
    complement as we know it.

CVS
Health
is shopping Aetna,
multiple sources told multiple
media outlets on Sunday.

The pharmacy hulk is appropriation a third largest insurer in the
US in a $69 billion deal.

The understanding creates a new form of company that includes a
health insurer, a sell pharmacy, and a association that negotiates
remedy drug prices with drugmakers called a pharmacy
advantages manager. It’s the biggest partnership to occur in the
US in
2017
.

The timing of this large merger is no coincidence.
Speculation that Amazon competence be removing into a pharmacy
business has been prevalent for months, and the
company’s notorious
for stepping
into new businesses and abrasive a competition
with low price, quick delivery, and a large network of loyal
shoppers.

What this means for how your remedy gets paid for

With a Aetna deal, CVS wouldn’t be alone in determining both
a insurer and PBM partial of profitable for
prescriptions. UnitedHealthcare, for example, owns a PBM
OptumRx, while Anthem, which owns a accumulation of Blue Cross
Blue Shield health word firms, will be rising a own
PBM called IngenioRx.

Essentially, CVS would possess each step of a remedy drug
routine with a difference of drug
wholesalers, which are in
assign of shipping drugs
 to pharmacies and hospitals,
and a curative companies that indeed make a drugs.
That would keep most of a income changing hands within a same
company.

Here’s a draft explaining how a drug travels from pharmaceutical
manufacturer to a patient, and who takes a cut in a process.
It’s a difficult web of payments and rebates, though the
simplified outcome of a understanding that puts pharmacy, insurer, and PBM
in one association is that a total business walks divided with more
of a drug’s sale cost in a end.

With a Aetna deal, CVS would control all that happens
once a wholesaler has handed off a drug.


Who pays for your remedy pharmaSkye Gould/Business Insider

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