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Insurers and the drug-industry middlemen they own stand to earn more as healthcare spending increases. AdvertisementAdvertisementFor US health insurers, explosive demand for new weight-loss drugs likely means bigger profits. Insurers and the drug-industry middlemen they own stand to earn more as weight-loss drugs drive up healthcare spending, BofA analysts wrote. Meanwhile, if the drugs help people live longer, insurers could earn more from higher enrollment in their health plans. As weight-loss drugs drive up healthcare spending, insurers will make more moneyWeight-loss drugs, which can cost around $1,000 a month, are driving up healthcare spending.
Persons: Li Ran, Brian Evanko, Evernorth Organizations: Trilliant Health, Bank of America Global Research, Getty, Cigna, CVS Health, UnitedHealth Group, CVS, Kaiser Family Foundation Locations: Xinhua, GLP
The deal would give it a stake in VillageMD, an annual dividend, and a push toward value-based care. VillageMD said this week that it plans to merge with fellow primary-care provider Summit Health-CityMD in an $8.9 billion deal funded in part by the healthcare giant Cigna. VillageMD CEO Tim Barry Courtesy VillageMD3 reasons why Cigna's investing $2.7 billion in VillageMDEvanko said the investment provides financial and strategic benefits for Cigna. That stake would provide the healthcare company, which reported profits of $5.4 billion in 2021, with an annual dividend of about 5.5% on $2 billion of the $2.7 billion investment, Evanko said, according to a transcript from Sentieo. Evernorth could take what it learns from partnering with VillageMD and extend those capabilities to other healthcare providers it works with, he said.
Cigna is putting $2.7 billion behind primary-care company VillageMD's merger with Summit Health-CityMD. The deal would give it a stake in VillageMD, an annual dividend, and a push toward value-based care. VillageMD said this week that it plans to merge with fellow primary-care provider Summit Health-CityMD in an $8.9 billion deal funded in part by the healthcare giant Cigna. VillageMD CEO Tim Barry Courtesy VillageMD3 reasons why Cigna's investing $2.7 billion in VillageMDEvanko said the investment provides financial and strategic benefits for Cigna. Evernorth could take what it learns from partnering with VillageMD and extend those capabilities to other healthcare providers it works with, he said.
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