CVS Is Said to Agree to Buy Aetna, Reshaping Health Care Industry

CVS Aetna

"Most vertical deals don't raise antitrust concerns, and the ones that do generally get approval to close with an agreement containing behavioral conditions", said Jennifer Rie, a Bloomberg Intelligence analyst who follows antitrust issues, in an email. A proposed combination of peers Anthem (antm) and Cigna (ci) was also shot down. It would also allow CVS to expand its 1,100 walk-in clinics, saving Aetna's insurance customers money by steering patients away from expensive hospital emergency rooms.

The FTC has typically handled mergers of retail businesses like CVS. Reuters first reported the terms of the deal earlier on Sunday.

The prospects for the deal are uncertain, since mergers involving health insurance companies have recentlyrun into regulatory roadblocks. They foresee it adding to adjusted earnings per share by the low- to mid-single digit percentage points. "There will be expanded opportunities to bring health care services to consumers every day", the companies added in a release.

A CVS Pharmacy Store in the city of Fort Worth.

On-site lab work and diabetes counseling are two other possibilities, said Larry Merlo, CVS Health president and CEO.

It is possible that if CVS-Aetna leads to other insurer-drug retail deals, then CVS and other pharmacy chains may be able to negotiate for more favorable employee insurer plans and cheaper prices for prescription drugs from Big Pharma giants like Pfizer, Johnson & Johnson and Eli Lilly. Expect that trend to continue as the drugstore switches more from selling products in its stores to services that can't be bought online, where retailers face formidable competition from the likes of Amazon. In addition to health clinics and medical equipment, CVS could provide assistance with vision, hearing and nutrition. PBMs like Optum and CVS's Caremark help manage prescription drug plans for commercial health insurers.

Independent PBMs have always been criticized for potential conflicts of interest with insurance company clients, because they could potentially keep cost savings from drug negotiations rather than passing them on to patients. "We view this deal as offensive by both companies, looking to a more vertically integrated, consumer directed, value-based care delivery future, and not a response to any threat from Amazon", Hill said.

Rohingya refugees still fleeing from Myanmar to Bangladesh
The purge began in November 2016 as the government responded to alleged attacks on Myanmar border posts by Rohingya insurgents.

Audio of Corey Feldman Interview From 1993 Resurfaces in Santa Barbara
The Los Angeles Police Department said there is no statement at time. The LAPD has yet to comment on the issue. Feldman's interview was located .

Work begins to collect toys for children in need throughout Western Washington
After taking a year off, David Sannes has returned this year as the coordinator for the Toys for Tots in Rocky Mount. Fortunately, the task at hand is a lot easier than fighting a war - it is giving back through Toys for Tots.

Where the CVS-Aetna merger could lower costs is in streamlining communications between patients, doctors and providers, Winkler said.

Ana Gupte, PhD, a senior healthcare services analyst at Leerink Partners, told CNBC she could see Walmart and health insurer Humana joining forces to compete in the shifting healthcare landscape.

To get there, CVS agreed to pay $69 billion in cash and stock for Aetna, the companies said Sunday.

Last month, the Justice Department sued to block AT&T's planned $85.4 billion merger with Time Warner, saying the integration of a content producer with a distributor could reduce consumer choice.

There is already speculation that the other insurers could now be a good strategic fit for CVS rival Walgreens as well as Walmart, which operates a lucrative pharmacy business.

But ant-trust regulators still need to evaluate it.

Related News:

  • 22-year-old found dead with bullet injury inside auto

    22-year-old found dead with bullet injury inside auto

    The police rushed to the scene at about 10.30 am on Wednesday, when they received the call about the body in the vehicle . The deceased has been identified as Rizwan Khan, who is believed to be in a relationship with a girl from Rohtak.
    Airtel, Intex partner for 4G phone at an effective price

    Airtel, Intex partner for 4G phone at an effective price

    If the customers do not want to recharge with Rs. 169 plan, they have the flexibility of doing recharges of any denomination. The customer would not be required to return the device to either party to claim the cash benefit, the company said.
    Sophie Turner Says Game of Thrones' Final Season to Premiere in 2019

    Sophie Turner Says Game of Thrones' Final Season to Premiere in 2019

    Production on the final season began in October and is expected to continue through next summer. In a new interview with Variety, Sophie Turner (Sansa) said it will come out in 2019 .
  • In Amritsar, London Mayor says time for British to apologise for Jallianwala

    In Amritsar, London Mayor says time for British to apologise for Jallianwala

    The London Mayor, on his maiden visit to Amritsar , also paid tributes to those who died at the sprawling ground in the city. The memorial was inaugurated in 1961 and serves as a way to remember those who died and were injured in the massacre.
    Uber paid hacker $100G to keep data breach a year ago  a secret

    Uber paid hacker $100G to keep data breach a year ago a secret

    They're a company that connected security researcher with other companies. Uber spokesman Matt Kallman declined to comment to Reuters .
    Derrick Rose apologizes to Cavaliers

    Derrick Rose apologizes to Cavaliers

    He suffered his first injury this season to his right ankle on October 20, but returned to the team after missing four games. Unfortunately, that didn't happen.
  • Atletico crash out, Chelsea sink to second place

    Atletico crash out, Chelsea sink to second place

    Chelsea have squandered an opportunity to finish top of their Champions League group by drawing 1-1 with Atlético Madrid. Champions League action will continue Wednesday evening when the teams' fates in the last four groups will be decided.
    Road Wars policeman James Dixon killed in tragic auto  crash

    Road Wars policeman James Dixon killed in tragic auto crash

    RIP Dixie, it was a pleasure knowing you. "He not only was a great guy but he was one of the proudest police officers around. The lunchtime accident happened on the A4 on Tuesday just three miles from Pc Dixon's base at Wargrave-on-Thames, Berks.
    Met Office upgrades snow warning to amber

    Met Office upgrades snow warning to amber

    Tonight will be dry, but very cold with a widespread severe air and ground frost along with icy patches. Along with higher ground, counties in the north and north west are expected to be worst hit.
  • Super Mario Run the most popular iOS game of 2017

    Super Mario Run the most popular iOS game of 2017

    Each country has its own lists (except for the iBooks Store), and we're here focusing on the top charts in India and the US. The app has a plethora of tools that provide a ground for layer-based video editing right on the iPhone.
    Unusual Volume Spikes For: The Walt Disney Company (DIS)

    Unusual Volume Spikes For: The Walt Disney Company (DIS)

    Shares have moved $9.52 over the past month and more recently, $7.23 over the past week heading into the earnings announcement. The Walt Disney Company ( DIS ) reported loss -1.64% in recent buying and selling session with closing price of $ 105.46.
    Lululemon athletica (LULU) Receives

    Lululemon athletica (LULU) Receives "In-Line" Rating from Robert W. Baird

    Royal Bank Of Scotland Group Plc decreased Intuit (NASDAQ:INTU) stake by 3,260 shares to 10,574 valued at $1.40M in 2017Q2. The Zevenbergen Capital Investments Llc holds 636,825 shares with $38.00 million value, up from 548,995 last quarter.


Most liked

Police responding to shooting at New Mexico high school
The shooter was later reported to be "down", said Shana Reeves, director of communications for the city of Farmington. Parents of Aztec High School students are being asked to pick up their children at the Aztec Police Department.

Stipe Miocic To Defend Heavyweight Strap Against Francis Ngannou At UFC 220
The UFC star is one of the hottest fighters in MMA at the moment after his sensational knockout of Alistair Overeem in Denver. Miocic also enters the fight on a five fight winning streak and he hasn't suffered a defeat in over three years.

PlayStation 4 Sales Surpass 70 Million Units Worldwide
Nintendo recently re-forecast the console's year one sales from 10 million to about 17 million. But we can't ignore the Nintendo Switch, which has also captured consumers' attention.

Richard Armitage to Star As Wolverine in New Marvel Podcast
The podcast also features the voices of Chris Gethard, Scott Adsit , Bob Balaban , Jordan Bridges, Michael J. Mashable reports that Marvel's iconic character Wolverine will be the star of his own podcast come 2018.

Did Trump's Teeth Almost Fall Out During His Historic Israel Speech?
On Thursday, the White House said it was just a case of dry throat, per the Today show. "There's no shame in having dentures". Last night, Trevor Noah of The Daily Show pointed out that Trump, while speaking about moving the U.S.

Hugh Jackman ditched James Bond role for X-Men 2
It's the early 2000s and Hugh Jackman has exploded onto the scene following his appearance in X-Men as the legendary Wolverine . That aside, another motivating factor for Jackman to turn down the part was the desire to do other projects.

IPhone X Plus: More details emerge about plans for 2018 iPhones
CR described the latest iPhone model an "innovative device with a fantastic camera and handsome display", but average durability. The iPhone X performed about the same as two other flagship phones, the Samsung Galaxy S8 and S8+, Consumer Reports said.

SPD's Martin Schulz wants United States of Europe by 2025
But he met the fate of Merkel's previous challengers, with a campaign losing steam amid a string of regional poll defeats. The leader of Germany 's main socialist party has called for a United States of Europe by 2025.

Here's a detailed look at PUBG's new map
There's also the smaller town of Pecado , and a bunch of tiny locations with simple names like Cemetery and Junkyard. The map features a portion of beach towns overlooking the sea, but most of the action will take place inland.

The Brokerages Set Amazon.com, Inc. (AMZN) PT at $1015.07
Currently, 0.10% of The Boeing Company (NYSE:BA) are owned by insiders with 72.09% six-month change in the insider ownership. Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally.

Buhari scores his Administration, Says he has performed well
The 500 inmates were either pardoned or set free upon the payment of fines by the Kano State Governor Abdullahi Umar Ganduje. The "commissioning" of the release of the prisoners took place at the Kurmawa Central Prison in Kano.

Kim Kardashian West Announces New Realty Show Glam Masters
Each episode will feature four beauty bloggers facing off in challenges to see who has what it takes. Laverne Cox has been tapped as the makeup competition series' host and judge.

The Rock Receiving Star on Hollywood Walk Of Fame
Well Dwayne "The Rock" Johnson is no ordinary man as the wrestler turned actor will be honored with his own star later this month. His next project also includes a " Fast and Furious " spin-off movie based on his breakout character Hobbs.

Jordan Peele rebooting The Twilight Zone on CBS All Access
Peele, who rose to fame on the Comedy Central sketch series "Key & Peele", has proved adept at socially relevant horror. Peele will produce through his Monkeypaw Productions banner while Kinberg's Genre Films will also produce.

Peel Hunt Reaffirms "Hold" Rating for Rightmove (RMV)
With 716,100 avg volume, 8 days are for Barnes & Noble Incorporated (NYSE:BKS)'s short sellers to cover BKS's short positions. The Company operates in five divisions: John Crane, Smiths Medical, Smiths Detection, Smiths Interconnect and Flex-Tek.