It was a big year for ever-bigger CVS Health, which notched a 5% increase in annual revenue, to $195 billion, as it closed its $70 billion acquisition of insurer Aetna. The Rhode Island retailer saw particular strength in its pharmacy business—thanks to more network claims and increased prescription volume—even as downward price pressure continued. But all eyes remain on Aetna, and so far, it’s tough sledding. An underwhelming February forecast, and acknowledgment that CVS would have to invest in Aetna as much as it expected to save in the deal, disappointed investors and led to its share price dropping 20% to below $55. Can CVS cure what ails it? That depends in part on what happens in Washington. In May, CEO Larry Merlo joined industry peers in criticizing proposed “Medicare for All” legislation that would eliminate private insurers and disrupt the American health care system.
Looking for leads, investment insights, or competitive intelligence?
News about CVS Health
One-third of the current Medicare system is run by private companies.
The move comes a week after CVS said it will sell CBD products in 800 of its stores.
Deal will reduce Centene's dependence on Obamacare exchanges.
Democrats running for President have the industry on edge.