The Aetna and CVS Deal: Everything You Need to Know
The Aetna and CVS deal has been a hot topic for some time now. In December of 2017, CVS announced its plan to purchase Aetna and in March of 2018, shareholders on both sides approved the transaction. One of the last hurdles for the Aetna and CVS deal to be finalized was approval from the Justice Department. In early October of 2018, the Justice Department granted approval and the $69 billion merger became official.
What does the Aetna and CVS deal mean for agents?
Last year, CVS provided prescriptions to an estimated 94 million customers while Aetna provided coverage to an estimated 22 million. The overall goal of this merger is to strengthen the two companies, coordinate better care, and improve costs. Chief Executive of CVS, Larry J. Merlo, stated that the approval of this merger “is an important step toward bringing together the strengths and capabilities of our two companies to improve the consumer healthcare experience.” As an agent, it’s important to understand the moving parts of this deal.
Will Aetna be a standalone subsidiary?
Yes. Even though the Aetna and CVS deal will merge the two companies, Aetna will still be led by the current management team. Aetna’s CEO and other executives will be added to the CVS board of directors and play a large role in the newly merged company.
Should I expect a change in CVS stores?
Yes. Many CVS stores currently offer healthcare service through their Minute Clinics. The Aetna and CVS deal will allow CVS locations to become a one-stop-shop for all health and wellness needs. This includes clinical and pharmacy services, vision, hearing, etc. Aetna’s CEO, Mark Bertolini, has plans to create hubs, similar to Apple’s structure of Genius Bars, however, these “bars” will be healthcare focused. This will allow consumers and beneficiaries to have easy access to basic healthcare products and the ability to have their health questions answered.
How will this deal affect the healthcare industry?
Both companies agree that the Aetna and CVS deal, with the help of data, will lower costs and provide better care. Each company has a large set of data. When this data is combined with the expected changes to CVS stores, consumers will be offered new health products at lower prices. The data from the Aetna and CVS deal is also expected to create tech-focused projects like remote monitoring tools for patients. For example, diabetes patients could have their blood glucose levels monitored remotely and receive text messages if the levels are too high or low.
Will this deal affect Anthem’s relationship with CVS?
No. Prior to the Aetna and CVS deal, Anthem and CVS agreed to partner up with its own pharmacy benefits manager, IngenioRX. Merlo, the CEO of CVS, says that the Aetna and CVS deal will have no impact on Anthem or IngenioRX.
Become an SMA Agent
The Aetna and CVS deal will impact agents and beneficiaries alike. This is a great example of how the healthcare industry and Medicare can evolve. At Senior Market Advisors, we make sure our agents are prepared for any evolution or change that may come your way. We offer a lead management system, online sales training, an experienced in-house marketing team, top-tier commission, and so much more! Ready to contract? Visit agentcontract.com to start digitally contracting, or click here to get in touch with one of our agent advisors.