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-   -   CVS in talks to buy Aetna? (http://www.actuarialoutpost.com/actuarial_discussion_forum/showthread.php?t=327639)

Colonel Smoothie 10-26-2017 05:38 PM

CVS in talks to buy Aetna?
 
Aetna stock up 11%

Dr T Non-Fan 10-26-2017 05:46 PM

CVS that big?
Also, doesn't Aetna do a lot of insurances, not just health? Or was that sold off?

JMO 10-26-2017 05:59 PM

I thought CVS was a drug store chain. Is it something else?

Dr T Non-Fan 10-26-2017 06:06 PM

That's the one.
They also run a mail-order business, I think, and one of its clients is Aetna.

JMO 10-26-2017 06:13 PM

Quote:

Originally Posted by Dr T Non-Fan (Post 9146990)
That's the one.
They also run a mail-order business, I think, and one of its clients is Aetna.

OK, that's who I thought. They also do Pharmacy Benefit Management. But I don't see how they could actually "buy" an insurer.

mathmajor 10-26-2017 06:17 PM

Quote:

Originally Posted by JMO (Post 9147020)
OK, that's who I thought. They also do Pharmacy Benefit Management. But I don't see how they could actually "buy" an insurer.

Probably like how Express Scripts "bought" Medco... a fancy term for a merger but technically a sale.

Colonel Smoothie 10-26-2017 06:39 PM

Quote:

Originally Posted by JMO (Post 9147020)
OK, that's who I thought. They also do Pharmacy Benefit Management. But I don't see how they could actually "buy" an insurer.

By paying money for it?

JMO 10-26-2017 06:42 PM

Quote:

Originally Posted by Colonel Smoothie (Post 9147092)
By paying money for it?

IME insurers are owned by holding companies or other insurers. Not by retailers, piano makers or banks, etc.

If the talks are actually taking place (I don't know if they are or not) I suppose the lawyers will figure out how to structure it. Maybe the holding company will own both Aetna and CVS.

Byram 10-26-2017 07:36 PM

I think I'm just as surprised about this rumor as the next guy/girl, but just for some context:

CVS is the 7th largest US company by revenue. In fact, the retail and PBM segments each had more revenue than Aetna did as a whole for 2016. There's some intersegment mix going on, but in total CVS is almost 3x the size of Aetna by revenue. Although the market cap spread isn't as large, CVS still has a 25% edge.

ElDucky 10-26-2017 07:45 PM

Picking up some medication. Might as well buy some insurance too!


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