Datapoint: Is CVS Eyeing a Breakup?
CVS Health Corp.’s board of directors is reportedly considering breaking up its diversified health care enterprise due to the poor performance of its Aetna health benefits division, which has struggled to contain Medicare Advantage costs. CVS Health reportedly met with hedge fund investor Glenview Capital to discuss ideas about turning the company around; Glenview Capital has denied that it was pushing for a breakup of CVS. “Given what has happened over the last year, we don’t find it surprising that CVS’s board is taking a hard look at different options,” wrote Evercore ISI analyst Elizabeth Anderson in a Sept. 30 research note. Anderson added that CVS is “probably likelier to stay together vs. be broken up, but this decision will likely depend on the 2025 Medicare Advantage outlook and new pharmacy reimbursement model success.” Aetna currently serves 25,126,507 members, with 17.2% enrolled in MA.
Source: AIS’s Directory of Health Plans
