2017.10.2921:38:00UTC+00Proposed CVS-Aetna Merger Seen as a Healthcare Game Changer

The proposed merger between CVS Health Corp. and Aetna Inc. is seen as a game changer deal that is seen to lower the high cost of drugs in the U.S. by removing the middleman.

The deal, which amounts to $66 billion, will be the most expensive initiative to date that would allow Aetna, a top health insurer, to take back full control of prescription drugs for their client base by negotiating prices directly with pharmaceutical manufacturers and enable them to set costumer out-of-pocket prices for each drug.

CVS, one of the biggest U.S. pharmacy benefits managers, has offered to buy Aetna for over $200 per share, according to sources. People familiar withthe matter said it would need at least weeks for any deal to be finalized.

If the deal pushes through, it is seen to increase pressure on other participants in the market to mull mergers or change partners in order to step up their possible healthcare cost savings or bolster profit margins.

Insurers, traditionally, paid drug benefit managers in order to negotiate prices, with involved parties taking a share of any markdown by the time a drug was bought by customers.