Heres how CVS breakup of its pharmacy and insurance empire could affect consumers

CVS’ recent decision to divide its retail pharmacies from its insurance and pharmacy-benefit businesses has raised hopes of consumer savings as Americans continue to reel from high costs of living.The breakup of one of the biggest health-care conglomerates in the US has the potential to bring about lower costs on some services, though that remains to be seen, experts told The Post.“It is potentially a good thing, however, it will depend on how the regulators enforce the separation,” said Doug Hoey, CEO of the National Community Pharmacists Association. About 25% of the country has their prescriptions managed by CVS, with about 10% receiving direct insurance services from the company.CVS Health will keep its insurance company, Aetna, and its pharmacy benefits manager, Caremark under one roof.Meanwhile, CVS Pharmacy will include the company’s retail division, with 9,000 storefronts and mail-to-order infrastructures in another company, with the split-up going into effect by early 2028.The change in the company’s supply chain could allow some wiggle room for competition and might disincentivize the pharmacy benefits manager, Caremark, from trying to maximize profits from CVS pharmacy — translating to some savings on drug costs.“Caremark pays its affiliated CVS retail pharmacies, which results in higher premiums in cost sharing for patients,”  Emma Freer, a senior healthcare fellow at the American Economic Liberties, told The Post.

“So because they’re spinning off their retail pharmacies under this proposal, it would foreclose that particular avenue for that type of gaming.”In a statement, CVS maintained there has always been a firewall between the two entities and that they don’t influence each other. Dr.Mariana Socal, a Johns Hopkins professor who studies the pharmaceutical market, told The Post she doesn’t see prices going down because she doesn’t believe this split is actually separating Caremark and CVS.“There is no change,” she ...