YESTERDAY.
THE 70-YEAR-OLD ACTOR, FORMER
CALIFORNIA POSITIVE IS
REPORTEDLY IN STABLE CONDITION.
>> INTO MEANWHILE WALMART
REPORTEDLY IN TALKS TO BUY
HUMANA AS RETAILERS INCREASINGLY
ENTER THE HEALTH INSURANCE
SECTOR.
WE HAVE DOCTORS HERE TO DISCUSS
THIS.
DR. MIKE, LET ME START WITH YOU.
I THINK WHAT PEOPLE ARE REALLY
THINK ABOUT HERE.
WHAT DOES THIS MEAN FOR ME?
WHAT DOES THIS MEAN FOR ME AS A
CONSUMER AS THESE BIG MERGERS
HAPPEN AND PERHAPS ULTIMATELY
WHITTLE DOWN THE OPTIONS TO A
HANDFUL OF COMPANIES?
OFTEN THAT MEANS HIGHER PRICE.
>> YES.
SO THE PROMISE WE GET WHEN WE
SEE THESE TYPES CONSOLIDATION,
LOWER COST, IMPROVED QUALITY.
WHEN WE SEE THE M&As COME TO
FRUITION WE SEE HIGHER COSTS AND
NO IMPROVEMENT.
PHARMACEUTICAL WITH HOSPITAL
SYSTEM THERE IS REASON WHY THAT
IS.
THEY HAVE THREE TYPES OF
COMPANIES INVOLVED IN TAKING
CARE OF PATIENTS MEDICATION, THE
PHARMACY, THE PHARMACEUTICAL
COMPANY AND INSURER.
NOW IN THE MIDST OF ALL THAT YOU
INVOLVED WHICH IS SOMETHING NOT
MANY PEOPLE KNOW ABOUT, THAT IS
TRYING TO NEGOTIATE PRICES WITH
A PHARMACEUTICAL COMPANY ON THE
NOTION THAT IT WILL SAVE MONEY
FOR THE PATIENT.
CHARLES: RIGHT.
>> WHEN IN REALITY THEY'RE
MAKING BILLIONS OF DOLLARS WITH
NO PRICING TRANSPARENCY AND
SOMETIMES PATIENTS ARE REQUIRED
TO BEAR THAT COST.
CHARLES: SO COULD AMAZON BE THE
DIFFERENCE HERE?
BECAUSE THEY HAVE SORT OF PRIDED
THEMSELVES ON TAKING MARKET
SHARE BY BEING THE LOW-COST
PROVIDER OUT THERE?
THEIR EYE EMERGENCE IN THE
INDUSTRY COULD THAT CHANGE THE
DYNAMICS NOT JUST IN THIS
INDUSTRY BUT IN ALMOST EVERY
INDUSTRY WE SEE CONSOLIDATION WE
SEE PRICES GO UP?
>> I WAS SUSPICIOUS ABOUT THE
PURSUIT OF PROFIT WITH WALMART
WANTING TO MERGE WITH HUMANA.
BUT MY NUMBER ONE CONCERN, MY
NUMBER ONE PRIORITY, WE ALL KNOW
THAT WALMART HAS BEEN KNOWN FOR
THEIR LOW COSTS AND LOW PRICES
BUT WILL THAT TRANSLATE OVER TO
MY PATIENTS AND ALLOW THEM
AFFORDABLE, ACCESSIBLE, GOOD,
HIGH-QUALITY HEALTH CARE, NOT
JUST ACCESSIBLE HEALTH CARE BUT
WILL IT BE EXPENSIVE?
WILL THEY HAVE HIGH DEDUCTIBLES
AND PREMIUMS AND CO-PAYS.
CHARLES: IS IT TOO EARLY TO KNOW
THAT?
>> THIS IS THE AT TOP.
NOT SET IN STONE.
EVEN THIS MORNING PATIENTS ARE
QUESTIONING, BEING CONCERNED
ABOUT THEIR DEDUBBABLE AND WILL
THEIR INSURANCE COVER CHEST
X-RAYS, IF THERE IS POSSIBLE
PNEUMONIA?
THIS IS REALLY HEARTBREAKING.
YOU BY HOPE IT'S A STEP IN THE
RIGHT DIRECTION TO ALLOW BETTER
QUALITY CARE AND BETTER AND
ACCESSIBLE AND AFFORDABLE.
THAT IS THE PRIORITY.
>> GERRI WILLIS JOINS US.
THERE IS CALL KINDS OF STOCK
MARKET ANGLES.
>> RIGHT.
CHARLES: CONSUMER ANGLE, HEALTH
CARE IS A BIG ISSUE IN THIS
COUNTRY.
WHAT ARE YOUR THOUGHTS?
INTO HERE IS THE DEAL, THIS DEAL
IS NOT A DEAL YET.
WALMART TELLING ME THEY DON'T
RESPOND TO RUMOR OR SPECULATION.
THEY'RE NOT WEIGHING IN YET.
THEY'RE SAID TO BE TALKING
EVERYTHING IS ON THE TABLE.
UNDERSTAND THESE TWO COMPANIES
ALREADY KNOW EACH OTHER VERY,
VERY WELL.
THEY'RE DOING BUSINESS TOGETHER
TO OFFER MEDICARE PRESCRIPTION
DRUG PLANS TO MEDICARE PATIENTS
AND THAT IS A GOOD DEAL.
IF YOU'RE GETTING YOUR MEDICARE
FROM HUMANA AND WALMART AND YOU
BUY IT AT A WALMART PHARMACY AND
THERE ARE THOUSANDS ACROSS THE
COUNTRY, YOU'RE PAYING AS LITTLE
A DOLLAR PER PRESCRIPTION.
THE ONLY DEAL IS, YOU HAVE TO
BUY IT FROM A WALMART.
COULD IT BE COULD?
>> I THINK IT COULD.
YOU KNOW WHAT IT MAKE AS LIE OF?
THAT AMAZON CAN CONQUER EVERY
FURTHER INDUSTRY.
WALMART IS MUCH FURTHER ALONG IN
THE HEALTH CARE INDUSTRY.
THEY NEGOTIATED IN SIFTER
DIFFICULT LOCATIONS FOR THEIR
OWN WORKERS TO HAVE THEIR OWN
HEALTH INSURANCE COVERAGE.
WITHOUT A MEDIARY OR INSURER.
THEY BROUGHT COSTS DOWN THERE.
THE QUESTION WHAT WILL THEY DO
NATIONALLY?
CHARLES: THE IMPACT FOR THE
PATIENT.
WE TALKED ABOUT THE BUSINESS
SIDE.
WHAT ARE YOUR CONCERNS FOR THE
PATIENT?
>> MY WORRY IS WHEN YOU HAVE
THESE MERGERS YOU HAVE A LACK OF
TRANSPARENCY.
WHEN YOU HAVE A LACK OF
TRANSPARENCY IT POSES A
DIFFICULT QUESTION FOR PATIENTS.
THEY DON'T KNOW WHERE THEY'RE
GETTING THE BEST DEAL FROM
BECAUSE THEY DON'T KNOW WHAT
THEY'RE PAYING FOR.
THE IDEA OF PAYING FOR MEDICINE
IT IS AN INDUSTRY OF NEED AS
OPPOSED TO INDUSTRY OF WONT.
IF A TOY MANUFACTURERS MAKE AS
TOO HIGH OF A PRICE THE
CONSUMERS DON'T BUY AND MARKET
ADJUSTS.
IN A MARKET WHERE PATIENTS CAN'T
NOT CHOOSE TO BUY INSULIN.
THEY WILL PAY THE PRICE WHATEVER
SET FORTH BY THE COMPANIES.
IT IS IMPORTANT WE HAVE TO HAVE
THE TRANSPARENCY WHAT THEY'RE
PAYING FOR.
>> WHAT DO YOU MEAN BY
TRANSPARENCY IN THIS PARTICULAR
CASE?
IS IT BETTER TO HAVE MORE
PLAYERS THAN FEW PLAYERS.
THE FEWER PLAYERS HIGHER PRICES
OF THE WALMART IS LOW-COST
PROVIDER EVERY MARKET IT GETS
INTO.
IT ULTIMATELY COULD GET A GOOD
THING.
>> I PREY -- PRAY IT WILL BE --
THEY HAVE A PBM.
>> FARM MY BENEFIT MANAGER.
>> MAKING MONEY FOR THEMSELVES
AT THE SAME TIME.
>> TAKING SHARE OF PROFIT.
>> I WANT TO KNOW HOW MUCH OF A
SHARE OF PRESIDENT OF THEY'RE
TAKING WHAT IT MEANS.
THIS CRAZY AND VERY IMPORTANT TO
SAY.
A PATIENT CAN GO IN WITH
INSURANCE PAY MORE OF A CO-PAY
WITH MEDICATION THAN COME IN
UNINSURED AND PAY CASH.
THAT THAT IS RIDICULOUS.
>> WALMART HAS MANY WALK-IN
MEDICAL CLINICS IN THE CENTERS
AND HAVE THE PHARMACY HUMANA IS
TARGETING LOOKING UP OPENING A
PRIMARY CHAIN OF CARE CLINICS.
LOOKS COULD BE A BEAUTIFUL
MARRIAGE OF TWO COMPANIES
HOPEFULLY WILL ALLOW LOWER
COSTS, VALUE-BASED MEDICAL CARE
IS WHAT THEIR GOAL IS.
CHARLES: BUT YOU'RE OPTIMISTIC?
>> I AM.
ES HUMANA IS WELL-KNOWN TO
TARGET SENIOR CITIZENS,
MEDICARE.
EVERY DAY ABOUT 10,000 PEOPLE
TURN 65 EVERY DAY.
AND SO THERE REALLY STRONG WITH
THE SENIOR CITIZENS AND MEDICARE
PACKAGES AND THAT'S GROWING.
SO THIS IS A, THE IDEAL TIME FOR
THIS MERGER TO HAPPEN AND AS
WE'RE SEEING MORE SENIOR
CITIZENS --
CHARLES: EVEN THOUGH NOT A DONE
DEAL, GERRI.
WE DO KNOW THE DYNAMICS OF
INDUSTRY POINTING TO MEGA
MERGERS.
>> RIGHT.
CHARLES: THEY'RE BULKING UP TO
TRY TO COMPETE.
>> CVS, AETNA.
EVEN THOUGH STRUCTURE OF THE
DEAL IS GOOD COULD THIS GO
FORWARD WITHOUT THE U.S.
GOVERNMENT SAYING THAT IS
NON-COMPETITIVE, WE CAN'T DO
THAT SOMETHING HAS TO GIVE.
SOMETHING HAS TO HAPPEN.
THERE IS ONLY ONE DIRECTION
THESE PRICES GO AND THAT IS UP.
>> WE NEED A SHAKE-UP.
BY END OF THIS YEAR WE'LL HAVE