The health-care marketplace in its current form is usually not sustainable, said Cigna CEO David Cordani.
The health insurer announced Thursday which This particular planned to acquire pharmacy benefit manager Express Scripts in a $67 billion deal, the latest in a string of health-care deals. Even corporate giants Jeff Bezos of Amazon, Jamie Dimon of J.P. Morgan Chase in addition to Warren Buffett of Berkshire Hathaway are entering the mix, with the three saying they might partner to try in addition to lower health-care costs.
Cordani said he sees their entry as more of an opportunity than a threat.
“Our view is usually which the current marketplace is usually not sustainable,” Cordani told CNBC on Thursday. “The market demands more affordability, the market demands more personalization, the market demands more value, in addition to whether This particular’s the look of the brand new (joint venture) between the three organizations you identified or clients in addition to customers wanting more value, we will be well-positioned. The franchise today delivered the best medical cost from the industry in 2017.”
Cordani said he’s spoken to at least two of the three CEOs from the partnership about their aspirations in addition to Cigna’s.
“This particular combination accelerates our movement to deliver more value,” Cordani said. “which’s the basic thing. We want to drive change. We’re not trying to protect an insurance franchise. We’ve been driving service expansion, in addition to This particular’s about keeping people healthy in addition to improving clinical quality for when people consume care in addition to as a result, helping employers have healthy, productive, present employees in addition to therefore healthier businesses.”
The health-care industry is usually contracting as companies pursue vertical integration. Drugstore chain in addition to pharmacy benefit manager CVS Health said in December which This particular might acquire health insurer Aetna for around $69 billion.
Cigna’s deal with Express Scripts will combine a health insurer having a pharmacy benefit manager, which negotiates drug prices with manufacturers in addition to administers prescription drug programs on behalf of health insurers, self-insured companies in addition to government agencies.
“We evaluated the marketplace in addition to couldn’t be more excited about the move we took to further accelerate our strategy of improving affordability in addition to personalization for customers in addition to clients in addition to driving more choice, great alignment with health-care professionals in addition to more value for everybody,” Cordani said.
PBMs have come into the spotlight from the debate over soaring drug prices, with manufacturers accusing them of contributing to inflating costs. UnitedHealthcare said This particular week This particular might pass drug rebates onto consumers.