Becker's Healthcare February 7, 2024
Facing rising spending in Medicare Advantage, CVS Health lowered its 2024 earnings guidance.
According to CVS Health’s fourth-quarter earnings results published Feb. 7, the company revised its 2024 earnings guidance to $7.06 per share, down from $7.26. On an adjusted basis, the company projected $8.30 per share, down from $8.50.
The company expects its Medicare Advantage business to be “marginally profitable” in 2024, CFO Tom Cowhey told investors on a Feb. 7 call. CVS Health first warned medical benefit ratios from the first quarter of 2024 could be higher than projected in January.
The medical benefit ratio in the fourth quarter of 2023 was 88.5%, up from 85.8% in the same period the previous year. CVS reported...
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