Forbes May 1, 2024
CVS Health reported first quarter profits were cut almost in half to $1.1 billion compared to the year-ago period thanks to higher costs to treat patients insured by Medicare plans the company sells.
CVS, which owns the large health insurer Aetna, said seniors in the health plans it runs were using medical services at a higher rate than previous quarters, triggering a decline in operating earnings in the company’s health benefits segment.
“Adjusted operating income decreased 59.9% for the three months (to $732 million) ended March 31, 2024 compared to ($1.8 billion) the prior year primarily driven by increased Medicare utilization, the unfavorable impact of the previously disclosed decline in the company’s 2024 Medicare Advantage star ratings, as well as...
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