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Stock impact report

Why Walmart, CVS want to buy health insurance companies? [MSN Money]

AETNA (AET) 
Last aetna earnings: 10/30 06:30 am Check Earnings Report
Company Research Source: MSN Money
© David Goldman/AP Photo   The economics of healthcare in America is making for some strange bedfellows. CVS, the behemoth pharmacy chain, plans to buy Aetna, a 22-million member health insurer, for $69 billion. Less than two weeks ago, it became public that Walmart, where one in four Americans shop each week, is considering an acquisition of another insurer, Humana. Why would these two massive retailers want to buy health insurers? Think millions of customers under one roof buying insurance, visiting health clinics and — importantly — filling prescriptions. These merged insurer-retailers could have lots of price-setting leverage in dealing with pharmaceutical companies and hospitals. But consolidation like this also can threaten competition — and in healthcare markets, that is a demonstrated danger. Quotes in the article AdChoices To see clearly what's going on here, it helps to distinguish, as regulators do, between horizo Show less Read more
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