CVS Health Slashes 2024 Profit Forecast Amid Rising Medicare Costs

Shares of CVS plummet as the company faces increased medical expenses and cuts its annual earnings outlook significantly.

CVS Health reported a sharp decline in its 2024 earnings forecast, reducing expected adjusted earnings per share from $8.30 to $7.
The company's stock experienced a significant drop, with shares falling over 13%, marking the lowest level since 2009.
Increased medical costs, particularly in the Medicare Advantage sector, are the primary drivers behind the reduced profit outlook.
CVS plans to adjust its strategy by modifying plan designs and increasing premiums to manage the financial impact.
Despite the challenges, CVS remains committed to its long-term strategy and the integration of its health services, including the expansion of Oak Street primary care locations.