CVS Health President and CEO David Joyner highlighted Aetna’s “renewed vigor” during an Oct. 29 earnings call.
Despite CVS’ $4 billion loss in the third quarter, the company’s healthcare benefits segment generated $36 billion in revenue, a 9% year-over-year boost.
The loss stemmed from a goodwill impairment charge related to the healthcare delivery reporting unit. The dip comes after CVS shared plans to close 16 Oak Street Health clinics.
Mr. Joyner said Aetna had a “challenging” 2024 but is optimistic about the payer. Looking at current membership, over 81% of Medicare Advantage members are enrolled in 2026 MA prescription drug plans rated at least four stars. More than 63% are in 4.5-star plans.
“We are still in the early stages of the 2026 annual enrollment period, but we remain confident that our thoughtful approach to our geographic footprint, benefit design and pricing positions us well for another year of recovery,” Mr. Joyner said.
CVS has been prioritizing “margins over membership” in its MA business since last year.
“We expect another year of meaningful margin improvement at Aetna. This includes another year of progress in our Medicare Advantage business, supported by our disciplined approach to plan design and footprint in individual, as well as repricing opportunities in our group business,” CVS CFO Brian Newman said.
Still, CVS is approaching Aetna’s outlook carefully.
“We also expect a tailwind from our exit of the individual exchange business. Although our conversations with our Medicaid state partners continue to progress, … we are taking a cautious outlook in light of the broader pressures across the industry,” Mr. Newman added.
