CVS Health posted $2.3 billion in net income in the third quarter and revenue growth across its core lines of business in insurance, care delivery, pharmacy and retail, according to the company's earnings report published Nov. 1.
In August, CVS launched its Cordavis subsidiary to work with drug manufacturers on commercializing and/or co-producing biosimilars for the U.S. market.
For 2024, Aetna will offer the most Medicare plans in its history. In October, CMS rated 87% of Aetna's Medicare Advantage plans at four stars or higher, up from 21% in 2023.
CVS Health
- Total revenues in the third quarter were $89.8 billion, a 10.6% increase year over year.
- Operating income in the third quarter was $3.7 billion, compared to a $3.9 billion operating loss during the same period last year due to a $5.2 billion opioid litigation settlement and a $2.5 billion loss on assets held for sale associated with Omnicare, a long-term care business.
- Net income was $2.3 billion in the third quarter, up from a $3.4 billion loss year over year.
- The company's year-end adjusted earnings guidance is expected to range from $8.50 to $8.70 per share.
Healthcare benefits segment (Aetna)
- Total revenues in the third quarter were $26.3 billion, up 16.9% year over year.
- The medical benefit ratio was 85.5% in the third quarter, compared to 83.4% during the same period last year. The increase was partly driven by an increase in outpatient and supplemental services by its Medicare Advantage population.
- Medical membership as of Sept. 30 was 25.7 million, an increase of 1.4 million members since the same time last year, with the company noting a decline in Medicaid members due to redeterminations. There are 18.3 million commercial members, 3.4 million Medicare Advantage members, 1.4 million supplement members, 2.6 million Medicaid members and 6.1 million Medicare Part D plans.
Health services segment (formerly pharmacy services)
- Total revenues in the third quarter were $46.9 billion, up 8.4% year over year. The increase was attributed to pharmacy drug mix, growth in specialty pharmacy, brand inflation and the acquisitions of Oak Street and Signify Health, and partially offset by continued pharmacy client price improvements.
- Adjusted operating income was $1.9 billion in the third quarter, up 10.8% year over year.
- Total pharmacy claims processed decreased 0.8% on a 30-day equivalent basis. The decrease was driven by a Medicaid customer contract change and a decline in COVID-19 vaccinations.
Pharmacy and consumer wellness segment (formerly retail)
- Total revenues in the third quarter were $28.9 billion, up 6% year over year.
- Adjusted operating income was $1.4 billion, down 0.9% since the same period last year. The decrease was primarily driven by continued pharmacy reimbursement pressure, decreased COVID-19 vaccinations and diagnostic testing, but partially offset by increased drug purchasing.
- Prescriptions filled on a 30-day equivalent basis increased 0.4% year over year to 407 million.