Save money, live longer

30 March 2018 By John Foley Follow @johnsfoley

Merging with insurer Humana could put clinics in the U.S. retailer’s stores, keeping patients out of hospitals and insurance costs down. Walmart isn’t given to big acquisitions and $37 bln Humana wouldn’t come cheap. But a broader partnership could bring many of the benefits.

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Walmart is in talks with U.S. healthcare insurer Humana that could see the retailer make a full bid, Reuters reported on March 29, citing people familiar with the matter.

The discussions are preliminary and have focused on new partnerships, according to Reuters.

Walmart already has a branded drug plan with Humana that steers patients with Medicare, the government health-insurance program for the elderly, young and those with disabilities, into pharmacies in its stores.

CVS Health, which runs pharmacies and negotiates with drugmakers, is attempting to buy insurer Aetna for around $69 billion, a deal yet to receive regulatory approval.

Amazon, Berkshire Hathaway and JPMorgan said in January that they would form a company aimed at cutting healthcare costs for their U.S. employees.

Humana’s shares rose more than 10 percent in after-hours trading on March 29 to just under $298. Walmart’s shares fell 1.2 percent to $87.91.

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