Why the CVS-Aetna deal could push Walmart to buy Humana

Why the CVS-Aetna deal could push Walmart to buy Humana

"ORCRP000343-topic.html" class="local_link" >Aetna will test the Trump administration's approach to far-reaching corporate takeovers, just weeks after the US government sued to block a major telecommunications merger. The evolution won't happen overnight, but in time, shoppers may find more clinics in CVS stores and more services they can receive through the network of almost 10,000 locations that the company has built. "ORCRP015301-topic.html" class="local_link" >Time Warner, saying it would harm consumers and limit their media content options.

Aetna Chairman and CEO Mark Bertolini has talked frequently about how most of a person's life expectancy is determined by genetics and location and not by clinical care, which is where health care spending is focused.

CVS plans to run Aetna as a separate business unit.

How much scrutiny the deal gets from the government may depend on which federal agency reviews the takeover - the Justice Department, or the Federal Trade Commission. A merged CVS-Aetna might have enough clout to drive down prescription prices overall, but lowering prices on high-priced specialty drugs might remain an elusive goal, Winkler said. The deal will help it compete with others like UnitedHealth Group Inc. "If it works well for consumers, then maybe it will be OK (to regulators)".

That view was behind Delrahim's decision on November 20 to sue to block AT&T's proposed acquisition of Time Warner, a vertical deal that would bring together Time Warner content like HBO with AT&T's pay-TV and wireless distribution.

The $69 billion deal will affect more than 40 million Americans who are signed up under the health insurance giant.

"Consumers have to be concerned about removal of competition in the marketplace", he said.

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The deal would combine the 9,700 drugstores and more than 1,000 walk-in health clinics operated by Woonsocket, R.I. -based CVS with Aetna's 22 million medical members.

Aetna (aet) shareholders stand to receive $207 per share in the deal with CVS (cvs), the companies said.

CVS and Aetna said that patients will be able to go to a local CVS or minute clinic in between doctor visits for glucose level monitoring, counseling on how and when to use medications and advice on weight loss programs and better dietary habits. The bulked-up company also may gain more negotiating leverage over prescription drug prices, but it's far too early to say how much or whether that benefit will trickle down to customers.

There is already speculation that the other insurers could now be a good strategic fit for CVS rival Walgreens as well as Walmart, which operates a lucrative pharmacy business.

US drugstore chain operator CVS Health said on Sunday it had agreed to acquire USA health insurer Aetna for $69 billion, seeking to tackle soaring healthcare spending through lower-cost medical services in pharmacies. "Nothing about this deal says that's going to change".

The deal "would definitely be scrutinized, but ultimately we still see a path for it to get through", Newshel said in an email. That partnership could be thrown into jeopardy by the new Aetna agreement, health industry analysts said.

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