18.04.03 Walmart Humana

April 3, 2018
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Walmart May Buy Humana

4 in 10 Americans shop at Walmart each week, but competition has theA world’s largest retailer eyeing expansion into health insurance.

“If this deal could happen there could be synergies that will drive more people into the stores.”

Oliver Chen, Cowen senior retail analyst to CNBC

What’s in it for Walmart?

  • $eniors:A Humana’s core customer (as the 2nd largest provider of Medicare Advantage plans).
  • Complete Control: Operate as pharmacy, insurance & pharmacy benefit managers (negotiating costs of medicines for plans).
  • Increased profitability: Retail margins slimmer than health care.
  • Data:A Knowing more about you & how to better sell to you.

Why a Walmart-Humana Tie-Up Now?

  • Rapid consolidation:A Health industry merging for efficiencies.
  • Regulatory concerns:A A federal judge blocked Aetna & Humana merger. Insurers forced to look for new partners – like retailers.
  • Amazon:A Walmart’s biggest threat is teaming up with Berkshire Hathaway & JPMorgan in an effort to lower health care costs.

Remember: There's no official Walmart-Humana deal yet, but there's potential for this to be a major game changer. Did you know: 90% of America is within 10 miles of a Walmart? Wow.

by Jenna Lee,