CVS bought an insurer to become a health giant. Then the insurer stalled.
In 2018 CVS bought Aetna. By 2024 the Health Care Benefits segment's adjusted operating income fell to $307 million from $5,577 million, and total operating income fell 38% to $8.5 billion.
Transcript
It is 2018. CVS can buy the insurer Aetna and put insurance, pharmacy and care under one roof. Or stay a drugstore chain with its Caremark PBM. Your call?
CVS bought Aetna. The story wrote itself: a vertically integrated health company.
Then the insurance arm turned. For 2024, the CVS Health Care Benefits segment, which is Aetna, posted adjusted operating income of $307 million, down from $5,577 million the year before.
CVS's total operating income fell 38%, to $8.5 billion, dragged by the insurance arm.
Integration sounds like strength. It also means one unit's bad year becomes everyone's bad year. One year does not settle the deal. Before you integrate, ask which part will carry the others.
The records behind this video
Every figure in the video comes from this Decision Record, each with its sources.
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