Healthcare giant CVS Health closed its $70 billion deal to buy Aetna on Wednesday, ending months of review from state and federal regulators. The deal, which brings together one of the nation’s largest pharmacy chains and one of the largest health insurers, has lofty goals. Among them: better managed care, new points of access to the medical system and healthier communities. But will those be accomplished or it will it leave employers and employees on the hook for higher healthcare costs?
For answers, we talked to seven benefits insiders about what a CVS-Aetna might mean for the industry. Here’s what they said.
Only good for shareholders
“Every merger in the healthcare space — both on the carrier side and provider side — always comes with promises of increased efficiency, increased buying power and lower costs. However, in nearly every single case, the more assets a company amasses, the higher their costs tend to be. The reality is that it only gives the buying company more leverage to maximize their own profits, and lower rates or lower healthcare costs do the opposite for them. I hope that no one is fooled into thinking this is good for employers or patients. This is good for the shareholders of Aetna and CVS only.” — David Contorno, founder of E Powered Benefits, a benefits consulting firm in Mooresville, North Carolina
No evidence of improved patient care
“The history of consolidation in the healthcare industry doesn’t typically bode well for those who use and pay for healthcare services. Usually, consolidation means higher prices and there’s little to no evidence that it improves the quality of patient care. The CVS-Aetna merger might be a different beast. It could provide a more seamless and convenient experience for patients, but it would have to buck the trend to result in more affordable care.” — Suzanne Delbanco, executive director of the Catalyst for Payment Reform, a nonprofit coalition of about 30 employers seeking improvements to the healthcare market
Written by Caroline Hroncich,
Kathryn Mayer, &
Nick Otto, ebn
