CVS confirms it will split pharmacy business from insurance
The 2018 merger of insurance behemoth Aetna and a 9,000-store retail pharmacy chain had built a $117 billion empire. CVS Health confirmed Tuesday night that it would split in two, reversing the 2018 deal that brought together insurance behemoth Aetna and the 9,000-store retail pharmacy chain into a $117 billion empire. That deal ushered in a new era of healthcare consolidation, lacing together huge swaths of a highly regulated industry into a conglomerate critics said led to less competition and higher prices for consumers. Now, these companies are facing increasing regulatory scrutiny and political pressure in Washington, which is only expected to grow after Democrats regain control of Congress in January. “We believe based off of where we are and how we’re performing, the businesses are best served by splitting, ” CVS Chief Executive David Joyner told The Wall Street Journal on Tuesday.
The 2018 merger of insurance behemoth Aetna and a 9,000-store retail pharmacy chain had built a $117 billion empire. CVS Health confirmed Tuesday night that it would split in two, reversing the 2018 deal that brought together insurance behemoth Aetna and the 9,000-store retail pharmacy chain into a $117 billion empire. That deal ushered in a new era of healthcare consolidation, lacing together huge swaths of a highly regulated industry into a conglomerate critics said led to less competition and higher prices for consumers.
Now, these companies are facing increasing regulatory scrutiny and political pressure in Washington, which is only expected to grow after Democrats regain control of Congress in January. “We believe based off of where we are and how we’re performing, the businesses are best served by splitting, ” CVS Chief Executive David Joyner told The Wall Street Journal on Tuesday.