“We can make the insurance the back room of the operation, we can waive prior authorizations, we can waive copays as people use the system in a way that’s more effective so we can reduce costs. It’s simpler, it’s customized for the individual based on what they need and it’s cheaper.”
CVS and Aetna CEOs: Our $69 billion merger will reduce health costs for consumers immediately
- CVS Health and Aetna’s proposed megamerger will reduce health-care costs for consumers immediately, the CEOS of both companies say.
- “Over the next couple of years, you’ll see a dramatic change,” CVS Health CEO Larry Merlo says.
CVS Health CEO Larry Merlo and Aetna Chairman and CEO Mark Bertolini spoke on CNBC’s “Squawk Box” Monday, one day after announcing that CVS will acquire Aetna for roughly $69 billion in cash and stock. The deal would combine CVS’ pharmacy business and pharmacy benefit manager platform, also referred to as a PBM, with Aetna’s insurance business. Upon closing, “they’ll be things we’ll be able to do out of the gate,” Merlo told CNBC. “Over the next couple of years, you’ll see a dramatic change in terms of the store not just being about products but also service offerings that can help people on their path to better health.” CVS plans to run Aetna as a separate business unit. Bertolini will be on the combined company’s board but won’t be in charge of Aetna unit. The CEOs say they’ve had a business relationship since 2010.
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