- 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.
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
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
for stepping into new businesses and abrasive a competition
with low price, quick delivery, and a large network of loyal
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
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.
Skye Gould/Business Insider