CVS risks losing up to 10% in Medicare memberships next year

Pharmacy chain operator CVS Health (NYSE:CVS) warned investors on Tuesday that its Aetna insurance unit can lose up to 10% of its membership base in its Medicare Advantage business as the company prioritizes margins.

CFO Thomas Cowhey made the remarks at the Bank of America Securities 2024 Health Care Conference, days after the company's Q1 2024 financials disappointed Wall Street early this month.

During the quarter, CVS' (CVS) Health Care Benefits segment, which includes the Aetna unit, witnessed a ~60% YoY decline in its adjusted operating income as its medical benefits ratio spiked amid rising Medicare utilization among its members.

"The goal for next year is margin over membership," Cowhey said, adding, "and it used to be our mantra back in the Aetna days, and that's what we're going to do for next year."

"But could we lose up to 10% of our existing Medicare members next year? That's entirely possible. And that's okay because we need to get this business back on track," he added.

More on CVS Health

OTHER NEWS

23 minutes ago

Down 2-1, Panthers still have plenty of hope in East final against Rangers

23 minutes ago

Now is the time for Biden to get Russia to stand down in Ukraine

27 minutes ago

Ross: We have a 'once in a generation' chance to stop the SNP's push for independence

27 minutes ago

Video: Leonardo DiCaprio treats his niece Normandie, 16, to a lavish shopping spree in Beverly Hills - 10 years after she was 'abducted' by parents amid family turmoil

27 minutes ago

Video: Chip and Joanna Gaines face fan backlash over new Fixer Upper project: 'It looks like they're showing off'

27 minutes ago

Video: Jenna Dewan shows off her large baby bump in several string bikinis as she has fun by a swimming pool with her family on Memorial Day

27 minutes ago

Video: Chloe Sevigny puts on a VERY leggy display in black shorts while enjoying Memorial Day weekend with family in SoHo

27 minutes ago

Video: Simon Cowell's Britain's Got Talent Golden Buzzer act Duo Stardust given axe as he savages them after their live semi-final performance despite previously leaving him impressed

27 minutes ago

Video: Jackie 'O' Henderson breaks her silence on report she stole Ada Nicodemou's Stranded on Honeymoon Island job... and reveals her own MOTHER confronted her about the rumours

28 minutes ago

Princess Charlene Reworks Monaco's Flag With Sparkling Details in Louis Vuitton Cold Shoulder Dress at Monaco Grand Prix Gala for Winner Charles Leclerc

28 minutes ago

World Cup winner Christian Karembeu reveals two relatives were killed by snipers in New Caledonia

28 minutes ago

Limerick mayoral candidate revises debate decision after RTÉ’s U-turn

28 minutes ago

Memorial Day weekend on Galveston brings island's first drowning deaths of the year

28 minutes ago

KKR vs SRH, IPL Final: Kolkata Sink Sunrisers in Quick Time to Lift 3rd Title

30 minutes ago

Pat Sajak’s Final ‘Wheel Of Fortune’ Episode Air Date Set

33 minutes ago

North Korea 'launches missile', sparking 'take shelter' alert in Japan

33 minutes ago

North Korean spy satellite launch ends in failure

33 minutes ago

Player took less money to sign with Steelers

33 minutes ago

Coins on a soldier’s headstone: What do they mean?

33 minutes ago

Canada Is About to Spend $2 Billion on Homegrown AI: 2 Stocks to Reap the Benefits

33 minutes ago

Massive rain system to soak 80 per cent of Australia this week

33 minutes ago

T20 World Cup 2024: Check Team India's Itinerary in the USA Before Warm-up Match vs Bangladesh

33 minutes ago

Sky high rents and cheap houses. Here's what's happening in the NT property market

33 minutes ago

Soccer-Ronaldo breaks Saudi League's single-season scoring record

33 minutes ago

Trump Just Sold His $10M Jet to One of His Megadonors

36 minutes ago

Kelsey Plum Turns Heads Once Again as Video From Cigar Launch Becomes Public

36 minutes ago

Britain's Got Talent viewers issue same complaint as live semi-finals kick off

36 minutes ago

America clinches second straight Liga MX title in controversial fashion

36 minutes ago

Casemiro's Cup Final injury confusion

36 minutes ago

Five Labour MPs announce they will stand down at General Election

36 minutes ago

I've lived all over Australia - why do all surf shops do this one 'creepy' thing?

36 minutes ago

Businesses plead for help as Broadway subway construction delayed again

36 minutes ago

What a Winnipeg bug expert is predicting for mosquito season

38 minutes ago

LTA awards $530m contract for Cross Island Line’s Turf City station; work to start in Q3 2024

40 minutes ago

Ohio billionaire plans to take $20M sub to Titanic site to prove industry’s safer after OceanGate implosion

41 minutes ago

Newgarden salvages his season with an Indy 500 win on a last-lap defeat of a heartbroken O'Ward

41 minutes ago

Hollywood's understanding of beauty has changed, says Tom Burke

41 minutes ago

Nicki Minaj rearranges gig following Amsterdam arrest

41 minutes ago

Halle Berry hails Flintstones role as 'a big step forward for black people'

42 minutes ago

Sydney lightrail workers to strike due to pay concerns