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Walmart-Humana Merger

Another potential healthcare merger was announced last week with Walmart and health insurer, Humana, entering talks to join forces.

Walmart is reportedly unlikely to take acquisition of Humana, but the deal could result in a “financial and operating partnership around prescription drug sales or insurance coverage,” according to the New York Times.

For Walmart, the move is geared towards better serving the healthcare needs of Americans 65 and older – while Humana hopes to see a boost in enrollment for their insurance plans.

Humana’s most profitable piece of business is their private Medicare Advantage plans for older Americans. They are the third-biggest Medicare Part D provider with about 4.9 million people enrolled in their drug plans. Humana also owns its own PBM.

As part of the merger, Walmart could also potentially open urgent care clinics inside its stores that accommodate enrollees in Humana’s insurance plans.

The proposed merger follows the recent industry trends such as the Cigna-Express Scripts merger, the Amazon-JPMorgan-Berkshire Hathaway healthcare venture, and the CVS Health-Aetna merger.

While the deal has not yet been solidified, it’s clear that the healthcare landscape is changing rapidly from week to week.