CVS Health’s $69 billion bid to acquire insurer, Aetna, has been approved.
Today’s post is by Gayl Southard, Administrative Consultant at SafeSourcing Inc.
CVS Health’s $69 billion bid to acquire insurer, Aetna, has been approved by The Justice Department (JOD) . This could redefine how Americans get insurance. The JOD requires CVS to divest Aetna’s Medicare Part D prescription drug plan business for people as part of this deal. CVS has proposed selling that part of the business to WellCare Health Plans, which would satisfy the JOD’s request. “The divestitures required here allow for the creation of an integrated pharmacy and health benefits company that has the potential to generate benefits by improving the quality and lowering the costs of the health care services that American consumers can obtain,” Assistant Attorney General Makan Delrahim said in a statement.1
This merger would allow the Woonsocket, Rhode Island-based CVS to expand its drugstore-pharmacy (with more than 9,800 locations) into a healthcare coverage and medical care delivery destination. This would also allow more customers into CVS facilities for routine health ailments and away from costly emergency hospital visits. Aetna is the third largest U.S. health-insurance company and fourth-largest individual prescription drug plan insurer.
CVS Health indicated the Aetna acquisition is expected to close within the fourth quarter of 2018. Once the merger is completed, Aetna will run as a standalone business within CVS.
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Mike Snider, USA Today,10/11/2018