Construction and real estate companies face massive risks and have significant property & casualty (P&C) insurance needs. These risks are growing in severity

What does an CVS-Aetna merger mean for insurance markets and the consumer?

I’m generally bullish because it’s a net positive, but I’m also realistic.

  1. It gives CVS some vowels — finally — to play with.
  2. It’s a net positive for consumers (most directly for Aetna members).
  3. As big as it is — about $70B — it’s relatively small in terms of our national healthcare spending (about $4 trillion next year).
  4. Puts the combined companies on proximate footing with arch rival UnitedHealth — and includes a significant retail advantage.
  5. The combination will not have an impact on healthcare spending more broadly — and it certainly won’t affect the trajectory of this chart — or what we pay generally for healthcare.

NB: The chart only goes to 2014, but this year — 2017 — our per capita spending on healthcare will be close to $11,000.