CVS Health made an announcement yesterday that it would acquire Aetna for $69 billion. Should the deal go through, the biggest health insurers in America will join hands with a drugstore giant, and this means that the US health care industry would be reshaped for the better. This is also the biggest deal in 2017 and experts have argued that the deal is meant to make the two companies look more appealing to their clients. The health care industry is rapidly changing. Services that could only be acquired by visiting a doctor’s office can be accessed through the phone today. This has been made possible by the introduction of health apps and retail clinics. This deal also happens at a time that the health care sector is experiencing turbulent transformation. For instance, pharmacy companies, hospitals, and insurers in America are getting ready for the interruptions of a number of government programs.
For instance, following the latest plan to cut taxes by the Republicans, there are fears that the Medicare program will be affected. This also happens at a time when no one is sure about the future of the Affordable Care Act and when medical costs are rising. Consumers and employers are struggling with the costs with prescription drugs being among the hardest hit drugs by the rising cost. The deal also happens at a time when changing technology has brought about new competitors. Amazon is one of the companies that has taken advantage of the situation. However, for the changing landscape, a CVS-Aetna combination would prove to be a formidable force. This is because these two companies offer services that people require on a daily basis. Other than raising their revenue, the combination would also be beneficial to the consumers.
As for CVS, it concentrates its services to retail clinics and pharmacy chains. Aetna, on the other hand, specializes in insurance services. However, experts argue that there are some shortcomings that could arise from the deal. For instance, some patients who are covered with Aetna insurance feel that they might have a limited choice if they are forced to use CVS products. Aetna chief executive Mark T. Bertolini spoke about the deal. He said that a merger with CVS gives his firm an opportunity to offer quality medical care to their patients. This deal comes at a time when it’s rumored that Amazon is contemplating about entering the health care industry. Amazon has already overturned a number of industries such as the grocery industry, book buying, and retail shopping.