Walmart in Talks to Strengthen Ties to Health Insurer Humana
- 6 years ago
Walmart in Talks to Strengthen Ties to Health Insurer Humana
Walmart is unlikely to end up taking over Humana, these people said,
but the deal could result in a financial and operating partnership around prescription drug sales or insurance coverage.
Last year, CVS Health acquired Aetna for about $69 billion in a deal
that the companies said would reduce costs and increase health care services through retail clinics.
As part of that initiative, analysts said, Walmart could open urgent care clinics inside its stores
or hold community events, like bingo nights, that cater to enrollees in Humana’s insurance plans.
The two companies, one of the people briefed on the matter said, are discussing how to expand
that partnership in ways that would help drive more traffic to Walmart’s 4,700 United States stores, while increasing Humana’s enrollment.
“The strategy is aimed squarely at the senior market, to leverage Wal-Mart’s retail presence to redefine primary care in Medicare Advantage,”
John Gorman, the executive chairman of Gorman Health Group, a consulting firm for government health businesses, said in an email.
Rising health care costs and the prospect that Amazon will make inroads into the pharmacy business
and the broader health care industry have set off a spate of deals.
Now the two companies are exploring ways to strengthen their ties, people briefed on the matter said Friday, the latest sign of the disruptive pressure
that is forcing new alliances in the health and retail industries.
Walmart is unlikely to end up taking over Humana, these people said,
but the deal could result in a financial and operating partnership around prescription drug sales or insurance coverage.
Last year, CVS Health acquired Aetna for about $69 billion in a deal
that the companies said would reduce costs and increase health care services through retail clinics.
As part of that initiative, analysts said, Walmart could open urgent care clinics inside its stores
or hold community events, like bingo nights, that cater to enrollees in Humana’s insurance plans.
The two companies, one of the people briefed on the matter said, are discussing how to expand
that partnership in ways that would help drive more traffic to Walmart’s 4,700 United States stores, while increasing Humana’s enrollment.
“The strategy is aimed squarely at the senior market, to leverage Wal-Mart’s retail presence to redefine primary care in Medicare Advantage,”
John Gorman, the executive chairman of Gorman Health Group, a consulting firm for government health businesses, said in an email.
Rising health care costs and the prospect that Amazon will make inroads into the pharmacy business
and the broader health care industry have set off a spate of deals.
Now the two companies are exploring ways to strengthen their ties, people briefed on the matter said Friday, the latest sign of the disruptive pressure
that is forcing new alliances in the health and retail industries.