>> CVS is plan to acquire health insurance company at number $69 billion, threatening to alter the way companies provide health care coverage to employees. Right now, most employee benefits are handled by different parts. Medical care is covered by the insurance company, but a pharmacy benefits manager, like CVS, handles prescription drug coverage.
Reuters Healthcare and Pharmaceutical Correspondent, Caroline Humer.>> For large corporations right now, they have a pretty good choice of who they can shop around their pharmacy benefits to. So they can play Company A off Company B off Company C, get the best price, and that helps their employees.
After this deal goes through, they'll still be able to make that choice. But because the companies are gonna be integrated, there's gonna be a lot harder sell, maybe some extra fees. That large corporates will be pushed to kind of stay with their insurer for everything.>> And comparison shopping could get harder if the trend continues, Aetna and CVS are hooking up.
There's UnitedHealth and Optum leaving Express Scripts as the biggest pharmacy benefits manager without an insurance partner for the time being. But paying forever rising drug prices is a cut throat business, leaving many doubts about the industry's ability to rein in costs. And the same goes for the insurance business.
>> Some Wall Street analysts are worried that that $750 million in cost savings which the companies say they can achieve in 2020 at the earliest is not all that achievable. It's a very competitive business. Health insurance companies compete for cents with each other. And they may have to give some of those savings back just to keep their place in the market.
Shares of CVS tumbling to 4.5% and Aetna finished Monday trade lower as well.