In an interview, CVS Health, CEO Karen Lynch said that they reaffirmed during the pandemic what was always known — health care is local. She also talks about CVS plans to reenter into the individual public exchange market as of January 1, 2022.
- The Aetna Connected Plan with CVS Health, which debuted in greater Kansas City last August, melds the full range of CVS Health capabilities with Aetna’s cost-saving I-35 Performance Network.
- In addition to expanding that program, Aetna is setting the stage to once again offer policies to individuals under the Affordable Care Act. The move should enable the company to build on the success of its Medicare programs and other government businesses.
- Lynch indicates that Aetna Connected Plan with CVS Health will be introduced in up to 15 more markets this year. “After careful consideration, we have decided to reenter the individual public exchange market as of January 1, 2022,” Lynch says. “As the ACA has evolved, there’s evidence of market stabilization and remedies to earlier structural issues. It is now time for us to participate in these markets. We will show that we can bring great value to those who seek coverage.”
- One year into the pandemic, the top payer has been able to expand its customer relationship base. “This experience(vaccination) has really validated our strategy. We’ve reaffirmed during the pandemic what we’ve always known — health care is local. Being there in the community, providing easy access to care, affordability and simplicity, we’ve demonstrated our ability to help people on their path to better health. We’re shown that we will meet people where they want to be met — in the community, through our digital apps or in the home.”
- Lynch says that as a result of its COVID testing and vaccination program, the company has started relationships with some 8 million people who were not previously CVS Health customers. In addition, the new Return Ready initiative to help employers and schools bring people back to their normal routines has thus far attracted more than 100 clients representing 1.5 million individuals. “There’s no more important work that we could be doing than what we’re doing today,” notes Lynch, who joined CVS Health in November 2018 when it merged with Aetna, where she served as executive vice president, CVS Health, and president, Aetna.
- The opportunity to solidify and build on those relationships bodes well for a company that is accustomed to generating strong financial results. For the year ended December 31, 2020, CVS Health posted a net income of $7.19 billion, up 8.5% from fiscal 2019, on a 4.6% advance in revenue to $268.7 billion, the latter figure putting the company fifth in the Fortune 500.