, and i guess the most basic one was white aetna? what with specific about aetna that made you choose them from all the other options in terms of insurance companies? >> well, first of all, what many people do not realize is that cvs health and aetna have had a business relationship for about eight years now. and back in i'll say the 2010- 2011 timeframe, aetna had made the decision to essentially out source the management of their pharmacy and if it to cvs caremark. so we got to know the organization quite well over the past eight years and one of the things that is always important, it's been important as cvs has grown through acquisitions. i think it's important to many companies, you know understanding the culture of the organization and we would sit here today and say that culture can't trump strategy. and there are many stories out there that, while there are countless successful mergers and integrations, you know once that aren't successful often times, one of the dynamics associated with that disappointment stems you know, fr

so just one more follow on the aetna, i'm combining some questions here. people are concerned that, one, aetna will begin to push or require its people to use minute clinics over primary care doctors and that it will also encourage people or push people into high deductible plans. do you have any comment on those two concerns? >> that is a great follow-on to the last question. i should emphasize, you know, as parts of this -- this new model we absolutely see a role to be a complement to the role of the primary care physician. one of the things that's interesting is we've been in -- listen, i'm going to rewind ten years ago and, you know, minute clinic was evolving, it was being born, and ten years ago could you envision walking into a drugstore with a sore throat and a 101 temperature, be seen by a nurse practitioner, yes, you do have strep throat, i'm going to write a prescription for an antibiotic, you walk about ten yards, you get the prescription filled, you are back in the car on your way home to get some rest all in about an hour. well, 40 million pe

, a commercial insurance company, about trying to do a program with aetna's own employees that wouldually span out to members as well. then we saw them talking to life insurance companies and were really interested in finding out which among their members were engaging in healthy behaviors like working out and meeting step requirements every single day. i think for apple this is a really good sales channel. tim cook has also said they want this device to not just be an entertainment product or fitness product, they want it to fit into a potential medicare, medicaid or reimbursable market because it's creating more of a medical product these days something like the electrocardiogram, that had to be studied, they had to go through the fda for that so i think they're saying this is closer to a medical device than it is, say, an entertainment product, which i think the first version of the apple watch was. >> christina, thank you so much. christina farr, our colleague in san francisco. >>> check, please is next. for decades banks have been getting away with it. charging you excess fees.

. >>> health care provider aetna will pay nearly a million bucks. they have to pay $935,000 for sending thousands of letters that revealed patient hiv status through the window in an envelope. the settlement resolves allegations that aetna violated state health privacy laws. aetna must implement new training for three years. >>> three bay area walgreens stores could have pharmacy licenses revoked. a woman was performing the duties without a license. take a look at the map on the left. fremont, milpitas and san jose. the woman handled more than 700,000 prescriptions between the years 1999 and 2017. she no longer works for walgreens. the company says it has reverified the licenses of all pharmacists nationwide. >>> let's take a look at the commute this morning. we have one new issue in solano county. just before parish road. that's sofrt spread across the roadway. emergency crews are on the scene but that's stacking up quickly into the cordelia area. looks like our camera just froze up at the bay bridge toll plaza. other than the hov lanes are moving

aetna, he was talking about giving away apple watches.e's out as cvs buys aetna the agreement with apple gives you a chance to be able to reduce the price of your watch by doing what the health care program says it is an incentive business. i have been hoping that we get something much bigger. i want a deal with an aetna over getting your premiums down that is not in the cards getting the premiums down is probably one of the most important things we can do in this country i don't see anyone getting the premiums down. i was hoping for an apple deal to lower premiums. i am getting an apple deal that will sell more watches people care about the decline in the service revenue growth >> yes, they do. >> that's what people are focused on that's what the hedge funds are betting against, that's why they think you get a short tonight. short. and katie uberti talked about it. >> we'll have more on all of these around the bell. we'll look at verizon, the conference calls going on now. we'll have features from that. want to talk about pg&e's bankrupt

at leasture not in chicago great town, but cold >>> new this morning, aetna is teaming up with applepple watch it's called attain it will use your medical history to set personalized health goals. the app will reward aetna customers from meeting activity goals and economy e recommended tasks like getting vac sin ags or refilling prescriptions apple earnings are tonight me thinks that will be a big one. all right. up next, a facetime fluke. apple fixing a major security flaw that let's others eavesdrop on your group facetime calls yikes. plus, we just talked about some big earnings on deck a ton of well known names set to report their results today all coming up today pfizer, em, apple, and about 95 others we'll let you know the key names to watch when we come back so, servicenow put your workflows in the cloud, huh? mmhm. your employees must love you. [ chuckles ] thank you. you could say that. i love you. servicenow works for you. ♪ lookin' better than a body has a right to ♪ ♪ and shakin' me up so applebee's all you can eat is back. now with shrimp. now that's eatin' good in the ne

look on the services side things that i follow, cigna and express scripts coming together, cvs and aetnau have to think that others have to come together as well, because size matters >> right >> so you're going to see more of these companies in my opinion, come together because they're going to need to have a broader portfolio >> i have certain analysts who are go to, and lisa has always explained -- she understands this business, the distributors. but you understand the models. and the cvs deal is one that is not being talked about, where people feel it could be derailed by a judge and yet, i know you think it is the way of the future. >> i do. i think that consumerism is where we're at when you think about the biggest destructers in health care, you have talked about amazon and others it's not amazon, in my opinion, it's really going to be where the consumer wants their services it's going to be about value, it's going to be about quality, and it's going to be about convenience. if you think about those that can deliver that, absolutely cvs is deliver those you think about the store l

this comes after one of aetna vendors sent letters back in 2015. they revealed the recipients were taking hiv-related medications. aetna says in the statement it has implemented measures to ensure another breach never happens again. .. at a texas ice- detention facility. up to 30 detainees are said to be on a hunger strike. they )re refusing to eat .. to protest the conditions . new >>> new details on what must be a difficult condition all around. in the texas i.c.e. detention facility, up to 30 detainees are on a hunger strike. they are refusing to eat to protest the conditions of their confinalment. the i.c.e. source says that strike has been going on a month and agents are force feeding some of those protesters. i.c.e. also says four detainees in four other locations are refusing food, including one in san francisco. >>> a bay area restaurant banning anything wearing a make america great baseball cap from its best. in san mateo, he took to twitter to talk about the issue. he wrote, "it hasn't happened yet. but if you come to my restaurant wearin

lisa: cvs made a $70 billion acquisition by buying aetna. is looking at doing things via partnership. they have got great relationships with humana. labcorps, where they will have it is 600 locations in four years. united health care with med express. capitalt going to spend on making acquisitions but we have really good corner store locations. we are convenient, we can bring down the costs, we can bring that quality to the individual.a n are a lotthink there of investors today that are skeptical about whether walgreens can perform or not going into 2019 and beyond. when we look at our whole coverage universe, because we are focused on the consumer, we do believe in drug retail being at that annex of really being able to provide services at a lower cost. purer: i want to talk valuation because 2018 was a tough year. relative to the s&p, a lot of companies in the coverage area underperformed. absolute ore, relative standpoint, how do these companies look on the valuation perspective as we head into the year? lisa: my companies are pretty chea

new this morning, health care provider aetna will pay nearly a million dollars in a settlement with the5,000 for sending thousands of letters that revealed patients' hiv status through the window on the envelope. the settlement -- they mustust implement new training at a privacy risk assessment for three years. >>> three bay area walgreens stores could have pharmacy licenses revoked. they're accused of having a pharmacist perform without a license. the map on the left shows fremont, milpitas and san jose. the state board of pharmacies says the woman handled more than 700,000 prescriptions between 1999 and 2017. she no longer works for walgreens. the company says it has reverified the licenses of all pharmacists nationwide. >>> the chief financial officer at tesla is retiring again. the palo alto-based company announced that he will retire. he served from 2008 to 2015 and starting again in 2017. the vp of finance will take over the role. elon musk says he will stay on the job to become a senior adviser for tesla tore years to come. >>> here's a look at my storm concerns friday into satur

like repairing one wing aetna costs maybe a couple of cents as opposed to something that if you waitix, seven months, it could cost a couple thousand dollars so going in and finding hat information. emily: is having a sales teem work income terms of gentle remaining revenue? > right. it's too soon to say globally. they pull their finances tight to them with you in europe, we reviewed some documents that showed it is paying off in europe and it's up significantly, up to $135 million for 2007, which is the last filing that we were able to access so it is paying off but the larger question about culture is still undetermined. it might have been tricky to have the c.e.o. and leader of your company saying they're an engineering first, engineering-only culture and bring in a sales team after 15 years. that's tricky. emily: i know you'll be charting the road to a potential i.p.o. for us. coming up, the latest on bold new technology at the prison i said consumer show and we'll hear about 5g and the potential impact of the u.s.-china trade war. this is bloomberg. ♪ emily: this is "bloomberg t

you are announcing that you are launching in atlanta a partnership with aetna.o in partnership with several service providers. what is the next step? nick: over the past few years, we have worked hard to get a regulatory change to deliver , to the audience that needsheal most -- that heal most. is synchronized into the apple watch. paul, what attracted you to this company? paul: we had the idea of doing something like this a long time ago, but the technology wasn't there. we tried to build that at qualcomm. now is the time. the regulatory environment is right, the technology is there. emily: you make a good point, it sounds obvious, doctors on demand. give us an idea of the scale at which you are growing. on one hand, 100,000 housecalls is a lot. on the other hand, it is less than an average kaiser facility will see in a week. housecalls aren't just more convenient. they are fundamentally better health care because the doctor can see them in their environment. on a pretty exciting growth curve and that is why we are glad to add paul and governor bush to the boar

it was not a subject of our review in the aetna transaction or the cigna express script. >> basically as i understand it, they are prohibited from being able to tell the consumer that they can get the product less expensively, even by paying cash for it, than going through the insurance policy that they're utilizing, or vice versa. why would we tolerate that? >> as a consumer of pharmacies myself, i would find that offensive. i don't know exactly the competitive impact that would have. but i could see the problems ultimately, the anticonsumer problems. i don't know if that actually creates a competitive problem in the marketplace there, but i would want to study that further and see what the cms and medicaid restrictions are with respect to those types of gag orders. >> thank you. mr. chairman, my time's expired. >> the chair recognizes the ranking member, congressman nadler. >> thank you, mr. chairman. chairman simons, many leading economists agree the concentration in labor markets gives corporations the ability to hoard profits at the expense of workers. it's clear that the antitru

>> i think they have the potential to change the health care landscape with their acquisition of aetnaare experiencie indouble dt earnings growth. >> that's from frank thank you for all the questions. coming up, copper prices slipping on china. slow down worries. first up, kelly has a look at what's coming straight ahead >> welcome back. the shutdown impact on airlines. some of the major carriers are putting growth plans on hold as key offices at the faa stay closed >>> elliot's big plans for ebay. the activist hedge fund says changes are needed and what we look at what is being proposed >>> the $500 million battle. silicon valley takes on hollywood in a costly face off all that and more ahead on the exchange the halftime report is back after this lies beyond the tech sector. it's about technology transforming every sector. ♪ at pgim, our bottom-up approach uses a technology lens to identify long-term winners. from energy... to real estate... to retail. finding such opportunities for alpha is the true value of active investing. and around the world, you have a partner in that pursuit.

. >> warsaw, bourbon, aetna green. >> your mom's side of the family. >> my mother's side of the family. the side of the family that produced the bible. >> that's a serious -- how far does that go back? >> 1848. >> that's glorious. >> cool. >> thank you very much. >> thanks for giving me the honor. >> thank you very much. >> senator, congratulations. >> thank you. >> thank you for the honor. >> thank you, my husband bruce. >> pleasure to meet you. >> very nice to meet you. congratulations. >> thank you. >> very good. right here. and then the photographer wants you to face a little more that way. >> a little more outward. >> i will administer the oath. raise your right hand. do you solemnlily swear that you will support and defend the constitution of the united states against all enemies foreign and domestic. >> i do. >> bear true faith and allegiance to the same, that you take this obligation freely, without any mental reservation or purpose of evasion, and that you will well and faithfully discharge the duties of the office on which you are about to enter, so help you god? >> i do. >>

. >> kamala harris is putting aetna and cigna and every other private health insurance company on notice how important is it to get rid of private insurance companies because there's confusion about that. >> i'm glad you asked. the bottom line of the most important is that everyone have access to health care. that is the goal, that is the purpose for me supporting the policy of medicare for all. >> she isn't the only one offering medicare for all, kirsten gillibrand is too. >> i believe that health care should be a right and the privilege. >> health care for everyone. >> dnc chair tom perez isn't sure his party's nominee will push medicare for all but he insists that they will try to ensure every american. >> the democratic primary will have a debate about how do we get from 90% coverage to 100% coverage. >> the idea that everyone could apply for government run insurance coverage only available for people over 65 or disabled is an idea that is a lot more popular in the 2020 primary. >> medicare for all. >> than 2016 when senator bernie sanders ran on it. >> i think more people understand

what can you now do with aetna and cvs together that benefits the consumer? larry: we see three imperatives that bring our vision to life. the first one is being local. today, consumers want to access health care where, when, and how it is convenient to them, whether the community, home, or in the palm of their hands as a digital device. the second is to make it more simple. we seeing opportunity to create a more connected experience for consumers that can help them access the information, the resources and the services that they need to help them on their patient journey, and the third imperative is to simply help people achieve their best health. our vision for the future is we improve the patient experience, the consumer experience, and we will improve consumer engagement around their health. you do that with the right products and services, and when we do that, we will low were overall health care cost. taylor: lowering health care cost, part of that is lowering drug prices. you talked a lot about ways to lower drug prices. what are you doing to do that,

>> caller: hi, jim my question is about the aetna cvs merge, and i owned etna. now i own cvs and some cash due to the merge, and i'm wondering, number one about the merging court issue and number two, if i should hold, sell or invest more >> i have a conference call on thursday for members -- at 11:30. i'm going to be talking about cvs. i think this has become one of the cheapest stocks in the market it was down again today. the walmart's having a fight with them. they're going up against walgreen's they're going up against everybody because they bought this etna, and they gave a very not great presentation recently that really made people feel like wait a second, numbers have to come down i am telling you i've never seen cvs this cheap i would love to buy more we bought a ton at this level. this is one you want to buy tomorrow after people cut numbers because it could be $0.06 when they announce this walmart thing. i urge larry merlot to come on air and talk about this combination. >>> apple's got ambitious in the health care segment. the company, let's say the

been telling club members, i think cvs is one of the absolute cheapest stocks now that it's bought aetna in the country, and larry come on air and tell us about it and that, ladies and gentlemen is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪ >>> on a hideous day for the broader market, but i admit it was worse at one point i search for the groups that manage to defy the gravitational pull today was the cannabis cohort, which blazed higher on no real news these pot stocks have been getting high pretty consistently from the beginning of the year the alternative harvest has pole vaulted up more than

transactions you are referring -expressis the cigna scripts acquisition, and the other would-be cvs and aetna. we looked at both of those. with respect to the cvs matters currently before the court, we demanded a divestiture of certain assets which they successfully did. we examined the vertical transactions there. one of the interesting things i think, is a fact that if you have multiple layers between the insurer, the pbm, the drug manufacturers, and issues of transparency of the actual drug costs, i think it goes to the heart of some of the complaints. , with theese integration, because there is some competition with the pbms, we believe the intention to use this in an anti-competitive way will diminish. two, what the economists call in or parlance, the elimination of double marginalization -- when you have an insurance company with a certain amount of margin and a pbm with a certain margin, they have incentive to be able to compete more and create transparency. so we think there is actually positive reforms that will come from the vertical transactions here that will benefit the consumer

when a massive hack happens, let's say to pge or marriott or aetna, and a lot of your data has been given over to god knows who, there will have to be consequences. unless companies are held accountable and we've got a very aggressive finding regime in europe now, i think we have to talk about something that is serious and the companies will take seriously and protect our data. so far, the consequences are very minor to companies that allow themselves to be hacked. sayingy seems to enjoy things that i did not say. what i said was not that 80% are indifferent. i said 10% are indifferent. 80% are in the camp of i worry about this, i will not freak out about it. when you survey americans, they said they would like more protection. we just did a survey where we polled americans -- almost every survey, they don't talk about trade-offs. who would like to be able to watch tv with no commercials? i would. but then i would not have tv because they would have no money. there is a trade-off. when you ask americans about a trade-off, you get a very different answer. 80% of americans would like online

when a massive hack happens, let's say to spg or marriott or aetna or your health care provider, and a lot of your data has been given over to god knows who, there have to be consequences, and unless companies are held accountable, and we've got a very aggressive fining regime in europe now, i think we have to talk about something that's serious and that companies will take seriously so that they step up and protect our data. so far the consequences are very minor to companies that allow themselves to be hacked. >> so sally seems to enjoy saying things that i didn't say. what i said was not that 80% are indifferent. i said 10% are indifferent. 80% are sort of in the camp of, yeah, i worry about this, but i'm not going to freak out about it. yes, when you survey americans, they say they would like more protection. we just did a survey on our website where we polled americans and -- by the way, almost every survey, they don't ask about trade-offs. who would like to be able to watch tv with no commercials? i would. but then i wouldn't have tv because they'd have no money, so there's a t

. >> cvs and aetna they don't stop selling that stock.ay was the walmart deal you got the judge, the dumping on it. i've been so long on this thing. i will not be wrong. this is -- this is cigna express scripps. >> you do? >> i do. >> you're going with a fine merlot. >> i'm not a pinot fan i paid a fortune for pinot in san francisco. now i'm paying a fortune for merlot he'll never come on our show i think we got to drop that. it is the first time he ever heard it, don't you think? >> maybe not 7-year-olds don't typically know -- >> 7 times earnings, chep st s , cvs. >> back to something we highlighted on your show, the constellation guys they came on, "mad money" last week, your crazy week in san francisco, they said they bought 1.1 million shares >> personally. >> yes wasn't quite the case. and i thought it was -- i'm noting it because it has been noted to me by a number of hedge fund managers, they weren't happy with it because they all went to look. >> bummed by my stuff or bummed by -- >> no. they felt like, well, they didn't really b

we saw that a lot through last cvs-aetna with the deal less margin really across the m&a world.can do a world of good for sediment when you see large deals getting printed and meaningful concessions coming through. brad,e end b -- david: what about the overall balance sheets being constrained? brad: we are not that worried about that. there has been a lot of press about the amount of corporate debt and how that is at the high of sort of that ratio of corporate debt to gdp being quite high historically. but they do not repay debt with gdp. if you look at those type of ratios, right, corporate debt to earnings, they actually look fairly good, especially after the tax changes we had last year. so we are not that concerned with leverage, but you are talking about margins. i think that is the right thing to be concerned about going forward. it changes if there gets to be some margin pressure, and that is what we're focused on. there is going to be some margin pressure this year. alix: with less issuance, molly, what the company use that for a do they use less of that if they do not i

there has been consolidation in the industry if you look at cvs health and aetna getting together andting together cvs health is $85 billion. does this make you feel pressure that you need to change and evolve to get bigger with those companies? >> we constantly wrestle with that question. i think in general we're seeing this industry slowly move to an industry that the business model is going from a utilization m maximizization to payments around value and cost and when that change is creating significant changes in the industry, technology is enabling it to happen, payment models like medicare advantage are making it happen, in addition consumer expectations. for us as an organization i think the best thing for us is to stay focused on what we do. today we are good and we've been doing this for quite some time on taking care of complex chronic patients and that's -- shows up in medicaid and medicare and that's a different business than just having scale and being in multiple different markets. >> what does that mean what do you do specifically? >> we do a few things. we take full ri