The U.S based health insurance company Cigna is planning to acquire the pharmacy benefits management company Express Scripts. The deal is fixed for about $52 billion.
Cigna–Express agreement will be a great example of the changes happening in healthcare and insurance sector. The realignment of the sector has attracted many titans like Jeff Bezos, Jamie Dimon, and Warren Buffett to enter into the healthcare and insurance field.
The rival of the Express, Caremark signed a deal to acquire Aetna recently. Aetna is the rival of Cigna.
It is expected that this the trend will continue for some time as President Trump and Republicans have diluted Obamacare benefits. The business executives are looking for methods to control health care costs.
Marianne Udow-Phillips, director of the Center for Healthcare Research & Transformation, University of Michigan said that the whole market is unsettled and is under transformation. Pharmacy benefit managers or PBMS are responsible for high drug prices, according to some healthcare companies.
Amazon.com, JP Morgan Chase, and Berkshire Hathaway are trying a new approach to lower the cost through their alliance.
CEO David Cordani said that the Cigna-Express Scripts deal will be able to address the healthcare needs of individuals in a better and faster way. It is expected that the change in approach will bring savings in the pharmacy and medical costs, which reach to the clients, customers, and partners.
The deal is expected to get finalized by the end of this year.