What the CVS/Aetna merger means for the future of healthcare

CVS recently completed its acquisition of Aetna, creating a first-of-its-kind powerhouse, combining the pharmacy giant with a large health insurance business. 

Katie Iacocca, a supply chain and health care industry expert, says one of the main drivers of this deal was the current healthcare landscape in the United States. "With pressure from the outside, the industry was left with no choice but to look within to reduce costs," she said.

"Think about it strategically: why would the nations’ third largest insurance company agree to be acquired by one of the nation’s largest pharmacy chains? It certainly isn’t because either company is struggling to survive. If it isn’t revenues driving this deal, then it must be costs."

So what might this mean for consumers?

"Clearly, this move was made to reduce redundancy and complexity in the healthcare delivery supply chain," Iacocca said. "It will inevitably lead to reduced costs. Sure, it may be that 100 percent of the cost savings are not passed on to the consumer, as some critics have claimed, but only time will tell. Realistically, consumers can expect to see most of the savings; can you imagine the uproar if they didn’t?" 

Iacocca believes this mega-deal is just the beginning for the health insurance industry. 

"I would expect we see other pharmacy- insurance mergers and acquisitions on the horizon, just as we saw pharmacy-PBM consolidation in the last decade. Then, who knows what is next: perhaps manufactures and wholesalers will get in on the trend."

"The reality is that consumers are not happy with the current healthcare climate and the industry must change. I expect more will follow and consumers will see cost savings without the expense of quality, which is really a win-win for all."

To speak with Iacocca, click on her headshot above, email mediaexperts@villanova.edu or call 610-519-5152.