Market Overview

Walmart Forays Into Health Insurance In A Bid To Expand Health Care Offerings

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Walmart Forays Into Health Insurance In A Bid To Expand Health Care Offerings

Walmart Inc (NYSE: WMT) is venturing into the sale of health insurance; a move that expands the retailer’s presence in the health care segment.

What Happened

“Walmart now has an insurance agency,” announced the retailer in a job listing for medical insurance agents.

The newly formed subsidiary, Walmart Insurance Services LLC, is looking to hire several agents to begin the first week of August 2020, according to the advertisement.

A Walmart spokesperson confirmed the creation of the insurance agency to CNBC but did not spell out any details on product offerings or pricing. 

The spokesperson said, “We’re expanding our current insurance services to now include the sale of insurance policies to our customers.”

Why It Matters

The focus of Amazon’s insurance subsidiary would be on selling Medicare Advantage plans.

Medicare Advantage Plans have grown over the past ten years, and private insurers cater to nearly a third of the beneficiaries of these plans, according to MedCity News, an online medical news publication.

Last month, Walmart had acquired healthcare startup CareZone’s technology and intellectual property for $200 million. 

CareZone provides health and medicine management services through its mobile applications and runs an e-commerce platform that delivers medications.

The retail giant already operates primary-care clinics and had in the past partnered with Humana Inc (NYSE: HUM) to offer a Medicare prescription drug plan, noted CNBC.

Price Action

Walmart shares traded 0.85% higher at $125.50 in the after-hours session on Wednesday. The shares had closed the regular session 1.98% lower at $124.44.

Image: Walmart Care Clinic

 

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Posted-In: Health InsuranceNews Health Care Management General Best of Benzinga