CVS Health saw COVID-19 expenses drop and government business rise, resulting in an 8.7 percent year-over-year increase in revenue, according to the company's year-end earnings report.
10 things to know:
CVS Health
1. Across its portfolio, CVS Health reported $292 billion in year-end revenue in 2021, up 8.7 percent over 2020. Revenues in the fourth quarter hit $76.6 billion, up 10.1 percent year over year.
2. The company reported dipping operating income both for the fourth quarter ($2.2 billion, down 11.7 percent) and for 2021 as a whole ($13.2 billion, down 5.2 percent). CVS Health attributed this to a $1.4 billion fourth quarter store impairment charge.
3. Net incomes both for the fourth quarter and the entire year were up, with the company recording $1.3 billion in quarterly profits, up 33 percent year over year. CVS Health recorded $7.9 billion in profit through 2021, up 9.8 percent over 2020.
Aetna
4. CVS Health's healthcare benefits arm recorded $20.7 billion in quarterly revenue, anchoring $82.2 billion year-end revenue. The figures marked 8.4 percent and 8.9 percent year-over-year increases, respectively.
5. The payer said growth was supported by increases in its government services business, as well as lower COVID-19-related investments.
6. While the fourth quarter saw a medical benefit ratio of 87 percent, the healthcare benefits segment recorded an 85 percent MBR in 2021, up from 2020's 80.9 percent.
7. Aetna recorded 23.8 million members at the end of 2021, up 400,000 people from 2020.
Pharmacy Services
8. CVS Health's pharmacy services segment saw 8.2 percent revenue growth in the fourth quarter (up to $39.3 billion). In 2021, the segment hit $153 billion in revenue, up 7.8 percent year over year.
9. The company also saw marginal increases in operating income, up to $6.9 billion in 2021, reflecting 20.6 percent growth year over year.
10. The company processed 2.2 billion pharmacy claims through 2022, up 6.2 percent.