What A CVS-Aetna Merger Could Mean For Customers
Chad Terhune, a senior correspondent for California Healthline, joined on Dec. 4, 2017, to explain what this deal may mean for consumers and the health care industry.
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Consumers might start to see some dramatic changes inside their neighborhood pharmacy.
CVS Health Corp. announced that it has agreed to buy health insurance giant Aetna Inc. for . The combined companies aim to put the retailer鈥檚 nearly 10,000 stores to better use delivering medical care that鈥檚 more convenient than what鈥檚 available from many doctors鈥� offices and hospitals.
Aetna鈥檚 chief executive, Mark Bertolini, has noted that many people see their pharmacist more than their doctor, and argues that those visits are a missed opportunity to address patients鈥� chronic conditions, such as diabetes and asthma, and keep more people out of the hospital. Consumers have seen a glimpse of this at CVS鈥� MinuteClinics, where nurse practitioners treat infections, sprains and handle other preventive care such as immunizations.
Many health insurers and employers encourage people to use those clinics, in some cases waiving copayments. Under this deal, the companies also have hinted at offering lab tests, dialysis, medical equipment and discharge planning after a hospital stay.
By teaming up, CVS and Aetna vow to improve people鈥檚 health and drive down the crushing cost of U.S. health care. However, the prospect of further industry consolidation alarms some consumer advocates, who say cost savings from a big merger rarely get passed on to the average customer. Federal antitrust officials are sure to scrutinize this deal closely in the months ahead.
This merger also comes in response to pressure from competitors 鈥� new and old. Online retailer Amazon is eyeing the pharmacy business, and there were last week about the company exploring potential deals with makers of generic drugs to speed its entry into the market.
CVS and Aetna also have another huge competitor on their minds: UnitedHealth Group. The nation鈥檚 largest health insurer has successfully diversified and extended its reach deep into America鈥檚 medicine cabinets, operating rooms and doctors鈥� offices through several acquisitions.
What remains to be seen is whether this deal passes muster with a Trump administration and if it triggers more mega-mergers in the health care sector.
Chad Terhune, a senior correspondent at California Healthline and Kaiser Health News, appeared Monday on KPCC鈥檚 鈥淭ake Two鈥� show to discuss with host A Martinez what this deal may mean for consumers and the health care industry.
This story was produced by聽, which publishes聽, an editorially independent service of the聽.