From Yahoo Finance: 2025-05-04 09:30:00

CVS Health is a major healthcare company with over $124 billion in revenues. The retail pharmacy sector, including Caremark and Aetna, faces challenges. New CEO David Joyner aims to define CVS as a trusted healthcare provider. CVS excluded Eli Lilly’s Zepbound in favor of Novo Nordisk’s Wegovy for weight-loss drugs.

Joyner emphasizes CVS’s commitment to being a top healthcare company and managing risk through provider services. CVS’s decision to leave the ACA marketplace reflects unprofitable Aetna plans. Joyner cites challenges in the ACA space, including uncertainty around government-funded subsidies set to expire at the end of the year.

CVS CEO Joyner agrees with Lilly CEO Ricks on the value of online platforms for products not covered by insurance. Despite growth in digital services, Joyner highlights the enduring appeal of in-person store experiences. CVS also announced it was leaving the ACA marketplace for the second time due to unprofitable Aetna plans and regulatory challenges. The company admits to struggling due to a subpar product and network, leading to a bad underwriting cycle and poor market mix. Government subsidies affect data cycles, limiting market predictability. The company is focused on a strategic turnaround, recognizing its inability to effectively compete. Time and money constraints hinder progress for a viable path forward.



Read more at Yahoo Finance: What is CVS? ‘We are … working through that very question’