CVS Profits Eclipse $2 Billion As Health Plan Enrollment Grows

CVS Health recorded a quarterly profit of over $ 2 billion thanks to new health insurance members “over all product lines,” and customers continued to rely on stores for Covid-19 testing and vaccination in the pandemic. ..

Wednesday’s CVS reported net income of $ 2.3 billion ($ 1.74 per share) compared to $ 2.2 billion ($ 1.68 per share) in the year-ago quarter. CVS revenue increased 11% to $ 76.8 billion in the company’s first quarter.

Revenue growth was boosted by health plan membership, which increased from 674,000 to 24.5 million as of March 31, “reflecting growth across all product lines,” the company said in its first-quarter earnings report. Stated. CVS owns Aetna, the third largest health insurance company in the United States, and part of its strategy is for health plan members to take advantage of the ever-growing primary care services of the drugstore chain at Minute Clinics and Health HUB. Is to encourage that.

New members were especially boosted by the highly competitive Medicare Advantage business. The Medicare Advantage business exceeded 3.16 million in the quarter, up from 2.87 million in the year-ago quarter.

CVS Health’s earnings contributed to the company’s decision to raise its remaining financial outlook for 2022, with adjusted earnings per share of $ 8.20 to $ 8.40 compared to the previous forecast of $ 8.10 to $ 8.30. It is expected to be in the dollar range.

“Our strategy improves access to affordable, convenient and personalized healthcare to benefit consumers and shareholders,” said Karen Lynch, CVS Health CEO. Said in a statement attached to the report. “We have once again demonstrated the power of our goals and possibilities, and based on our strong momentum, we have resulted in year-round guidance.”

CVS still sees a surge in Covid-19 vaccination and virus testing customers as the pandemic continues in the United States. CVS states that it had more than 8 million vaccinations and 6 million tests in the first quarter. Although the number of vaccines and tests was lower than in the previous quarter, revenue in the pharmacy services segment of the CVS business was still up 8.6% to $ 39.4 billion.