CVS Health chops 2024 forecast as cost struggles with Medicare Advantage persist

CVS Health Corp News

CVS Health chops 2024 forecast as cost struggles with Medicare Advantage persist
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CVS Health missed first-quarter expectations and chopped its 2024 outlook more than a dollar below Wall Street’s forecast. Shares of the health care giant plunged Wednesday morning after the company said it was still struggling with rising costs from care use in its Medicare Advantage business.

CVS Health missed first-quarter expectations and chopped its 2024 outlook more than a dollar below Wall Street’s forecast.

Medicare Advantage plans are privately run versions of the federal government’s Medicare program for people age 65 and older. In the first quarter, CVS Health booked adjusted earnings of $1.31 per share on total revenue of $88.4 billion.

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