Still, large employers are pushing for completely new products to reign in health costs in addition to improve care. Amazon, Berkshire Hathaway in addition to J.P. Morgan have joined together to create a firm, which will try to reduce costs in addition to improve care for their combined workforces of 1 million people.
Three years ago, when four of the major health insurers rushed to partner on large-scale mergers, the deals were blocked by the Department of Justice, in addition to ultimately rejected by the courts on anti-trust grounds.
Analysts say the CVS-Aetna in addition to Cigna-Express Scripts deals are different, because they are not mergers of rivals however rather vertical deals which might not result in fewer competitors from the medical or pharmacy benefit markets.
“On the anti-trust side I don’t see huge issues… with any of these three vertical mergers,” said Garthwaite, though he added of which integrated medical pharmacy benefits firms could make of which harder for completely new standalone entrants.
“If the barrier to entry can be of which everyone truly likes having their insurer in addition to their provider integrated together of which of which creates a much more attractive insurance class, then we should allow of which activity to happen in addition to we should regulate of which,” he explained.
“of which shouldn’t be of which we say we’re not going to allow a not bad product to emerge because we’re afraid,” Garthwaite added.
Last month, the department of justice asked CVS in addition to Aetna extended its review of the merger, asking the companies for more information. The firms still expect the deal to be approved from the second half of the year.
Even if regulators sign off on the deals, there are risks to execution for both Walmart in addition to CVS, as they try to integrate health insurance, pharmacy in addition to primary care services at such a large scale.
however Mercer’s Watts says even if the deals aren’t realized, health care firms are clearly searching for a product of which will provide more value in addition to better care for consumers.
“The fact of which people gravitate to how much better something could be in some of these partnerships – I think of which’s not bad. I think of which from the long term of which’s not bad for health care delivery,” Watts said.