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What the CVS-Aetna merger means for your health care

  Executive Director of CVS Health President and CEO of CVS Health Larry J. Merlo Reuters
  • The $ 69 billion merger of CVS Health and Aetna would create a completely new health care company, one that It contains an insurer, a pharmacy and a company that negotiates the costs of prescription drugs, among other businesses.
  • The agreement would put much more of the health system under the supervision of CVS and change the way people access their health care.
  • It could mean, for example, that much more medical care happens outside the office of a traditional doctor.

CVS Health's $ 69 billion merger with health insurer Aetna could put much more of the health system under the same roof.

Combined companies, which include a health insurance business, retail pharmacies, and a company that negotiates the prices of prescription drugs with drug manufacturers called pharmaceutical benefit managers, would have much more control over how the people access and pay for them. health care.

The goal of the agreement is to create "health centers," where communities can improve their health in a way that would not be seen if their pharmacy were separated from their urgent care and their insurance company. .

This is how Aetna CEO Mark Bertolini explained it in a phone call with investors on Monday:

"The really important part here is that we have to understand that almost 60% of Americans do not have a regular doctor Many people can not go in to see the doctor they want to see, so I see the offer, I think it's less about what the store looks like and more about the offer, and the experience the client gets is really about a model of a patient-centered medical home, where we support interaction with the medical community, prepare people for proper compliance, prepare them for their visits, set appointments, eliminate previous operations, do all that kind of things to help to navigate that system for them, then the relationship becomes trust and what I want to use again and again because it makes it much simpler. "

The model of "patient-centered medical home" to which Bertolini refers is a kind of primary care mod on in which primary care is more of a team effort beyond the relationship between a patient and his doctor. It could mean that there is much more health care outside the office of a traditional doctor.

Bertolini imagines that CVS pharmacies serve a lot like the Genius Bar that Apple has to provide technical support to customers.

"Think of the Genius Bar at Apple, for example, and this ability to walk in the store and get help," Bertolini said. "I think this is the kind of idea we want to create in stores, and I think we want to get started on projects and pilots as soon as we can."

While CVS could be best known for its rudeness 10,000 pharmacies across the US UU., CVS as a company operates several different businesses, including a pharmacy benefits administrator, its MinuteClinic health clinics that are staffed by health professionals, specialized administration services and pharmacy clearance, prescription mail services and long term care services.

Here is the complete breakdown of all parts of the healthcare system that CVS plays on its own:

<img src = "https://static1.businessinsider.com/image /5a26d5b6f914c31d008b8049-864/screen%20shot%202017-12-05%20at%20121550%20pm.png "alt =" Screenshot 2017 12 05 at 12.15.50 PM [19659018] SEC filing

With Aetna, CVS collects a few more pieces of the health care system, such as medical benefits and population health tools, adding CVS much more information to analyze also.   Screenshot 2017 12 05 at 12.16.23 PM Presentation by the SEC

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