CVS' bid for Aetna is a US$66b bet on cutting drug costs

New York

THE proposed merger between US pharmacy operator CVS Health Corp and No 3 health insurer Aetna Inc represents a US$66 billion bet that insurers can drive down high US drug prices by cutting out the middleman.

The move is the most expensive effort to date that would enable a national health insurer to take back full control of prescription medicines for their customers by negotiating prices with pharmaceutical manufacturers and setting customer out-of-pocket costs for each drug.

CVS, one of the largest US pharmacy benefits managers, has offered to buy No 3 health insurer Aetna for more than US$200 per share, sources said o…