“How do you make money? Spinoffs, split-ups, liquidations, mergers and acquisitions.”
— Mario Gabelli
Health insurer Cigna Corp. announced that it would purchase Express Scripts Holding Co., a pharmacy benefits manager (PBM) for $67 billion in cash and stock, including $15 billion assumed for Express Scripts’ debt. This announcement is the latest in a trend of merging healthcare companies and follows the December 2017 announcement of the Aetna Inc.-CVS Health merger.
The companies stated that the deal will save $600 million in administrative efficiencies, allow them to cut costs as they better coordinate pharmacy and medical claims, and could also increase their leverage in price negotiations with drugmakers. Health care industry experts have said in the past that coordination between insurers and PBMs could lower costs overall.
What does this mean for you and your business? Give our consultants at BenefitCorp a call to learn more.