CVS Health has reported a 6.3% increase in revenue year-over-year, reaching $95.4 billion for the third quarter.
This growth comes despite significant challenges within its health benefits segment, primarily driven by Aetna's underperformance.
The company’s year-to-date cash flow from operations stands at $7.2 billion, with a GAAP diluted earnings per share (EPS) of $0.07 and an adjusted EPS of $1.09.
Aetna's revenue for the third quarter hit $33 billion, a notable increase from $26.3 billion in the same period last year.
However, the segment reported an adjusted operating income loss of $924 million, with a Medical Benefits Ratio soaring to 95.2%, compared to 85.7% in the previous year.
Challenges for Aetna were further exacerbated by miscalculations in pricing Medicare Advantage plans for 2024.
CVS Health has appointed Steve Nelson, a former leader at UnitedHealth Group, to head Aetna in an effort to address these challenges.
CVS Health's health services segment experienced a 5.9% decline in revenues during the quarter, while the pharmacy and consumer wellness segment saw a 12.3% increase in total revenues.
CVS Health remains focused on implementing strategies aimed at enhancing operational performance and improving its healthcare delivery businesses and pharmacy benefit management services.