CVS Health CEO Karen Lynch Takes Over Aetna Amid Profit Outlook Cuts

CVS Health lowers its profit forecast for the third consecutive quarter, driven by higher medical costs and underperformance in its Aetna unit.

CVS Health CEO Karen Lynch assumes direct management of Aetna following poor performance and the departure of Aetna President Brian Kane.
CVS Health slashes its 2024 profit outlook, citing increased medical costs and unfavorable Medicare Advantage star ratings.
The company reported a 9% drop in net income for the second quarter, with significant declines in its healthcare benefits segment.
CVS plans a multi-year expense management initiative aiming for $2 billion in savings through operational optimizations and increased use of AI.
Revenue from CVS's pharmacy and consumer wellness segment rose by 4%, partially offsetting losses in other areas.