CVS Health to split pharmacy chain from health insurance
Summary
CVS Health plans to separate its retail pharmacies, clinics and mail-order prescription business into a company called CVS Pharmacy. The remaining CVS Health will house insurer Aetna, pharmacy benefits manager Caremark and other health services; the split is planned for early 2028.Key Facts
- CVS Health is valued at about $117 billion and reported more than $400 billion in revenue last year.
- The planned CVS Pharmacy business will include about 9,000 pharmacies, in-store clinics and mail-order prescriptions.
- The remaining CVS Health business will include Aetna, Caremark and services such as home visits and primary care for older adults.
- CVS and Aetna merged in 2018 in a deal valued at $70 billion.
- The company has faced scrutiny from lawmakers and regulators over the market power of large health care companies.
- Arkansas and Tennessee have passed laws aimed at limiting companies from managing prescription benefits while operating retail and mail-order pharmacies.
- A federal bill proposed by Senators Josh Hawley and Elizabeth Warren would increase antitrust action against the sector.
- CVS Chief Executive David Joyner will lead the health care solutions business, according to the announcement.
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