Possible acquisition of CVS health insurance $ 66,000 million could reduce the cost of the two companies, hoping at least to deliver some savings to the patient.
On Thursday, the Wall Street Journal, referring to unnamed people who said they were familiar with the situation; he reported that CVS Health Aetna gained in negotiations for more than $ 200 per share. The representatives of both companies refused to comment on the report.
While a CVS offer, with 9,000 national pharmacies Aetna at first glance may seem like a mouse swallows a cat, that’s actually quite the opposite. Market capitalization of CVS is currently three times higher than that of Ace, about $ 180 billion compared to $ 60 billion.
There are other aspects in your business that make insurance companies an interesting point for pharmacies, experts say.
Pharmacy is used for management
An important part of the CVS business is CVS Caremark, a CVS Health affiliate of Pharmacy Benefit Management. Pharmaceutical asset executive companies work with insurers to help them decide which medicines are most useful and profitable. They also negotiate discounts on drug manufacturers.
Aetna CVS allegedly has better links to manage prescription drug costs with the aim of promoting higher value and better drug use, said Laurence Baker, president of the Department of Research and Health Policy at Stanford University Medical School.
Baker notes that CVS and Aetna were not the only companies doing this dance. For example, UnitedHealth also works with a closely related PBM that created it.
Not everyone is convinced that prices for customers can fall
At a time when health costs are rising and hard battles over insurance and availability fought, a possible merger of business can mean more savings than individual customers.
Merging will probably not save much money for consumers, said Aaron Katz, health policy specialist at the Washington Public Health School.
This does not necessarily mean saving money at work. “Larger units tend to be more difficult price negotiators and contracts,” said Katz.
While supporters of healthcare companies often mention savings of closed systems and benefits to consumers, “I have not seen much convincing evidence,” Katz said.