Neither company has confirmed it, but The Wall Street Journal reports that CVS Health has offered to buy Aetna in a deal that could have vast implications in the retail health and insurance marketplaces. The combined company would have much stronger bargaining power when negotiating deals with health systems, payers, and pharmaceutical companies, than either company does alone. For starters, as the WSJ article points out, CVS’s pharmacy benefit management arm would see “a huge …
Read MoreAetna Plans 2018 Exit from All ACA Exchanges
Aetna has apparently had enough of trying in vain to make participation in Affordable Care Act (ACA, or “Obamacare) exchanges profitable, and will exit all ACA exchanges for the 2018 coverage year. They follow a long line of insurers who already checked out, complaining that the ACA program simply made it impossible to conduct business, economically. Aetna announced their plans right after revealing that they’d drastically reduce their exchange business for the 2017 coverage year, …
Read MoreAetna–Humana Merger is Dead in the Water
Aetna Inc. and Humana Inc. have opted not to fight the decision a judge laid down to block their proposed merger based on the presumption that the $34 billion deal would violate antitrust laws. The two companies will continue to operate as separate entities, though the door is still open for either or both to seek other partners. Had the deal gone through, Aetna would have become a kingpin in Medicare Advantage. The implications for …
Read MoreAre Retail Clinics Pennywise, Pound-foolish?
One of the retail health sector’s key selling points—convenience—may partially negate its perceived cost benefit vs urgent care or the emergency room. A new study published in Health Affairs reveals that use of retail clinics actually led to higher overall spending because patients were more inclined to seek professional care for complaints so minor that they could have been treated at home. The data, which reflect claims data from Aetna, indicate that 58% of retail …
Read MoreThink Tank Says Aetna–Humana Deal Would Make Seniors Pay More
The Center for American Progress (CAP), a Washington, DC-based think tank, says senior citizens will be forced to pay higher Medicare Advantage premiums if Aetna’s proposed acquisition of Humana goes through. Aetna currently holds 7% of that market and Humana 19%. While their combined share of the entire current Medicare market would still be just 8%, Anthem has also moved to buy Cigna Corp. The combined effect of such deals could cut competition and result …
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