CVS Health Earnings Are Soon. The Focus Will Be on the Future of the Medicare Advantage Business. — Barrons.com
By Josh Nathan-Kazis CVS Health’s quarterly earnings report Wednesday morning will shed light on whether the earthquake that has shaken the Medicare Advantage business this earnings season will rattle CVS, too. An unexpectedly high level of utilization of medical services by U.S. seniors in November and December of 2023 led to a spike in medical costs for Humana and UnitedHealth Group, those companies reported in January. Humana and UnitedHealth, along with CVS, are major players in the Medicare Advantage business, which offers privately-managed, government-funded health plans to U.S. seniors. The higher costs are raising worries about the Medicare Advantage business, which all three of the companies have dedicated extensive resources to serving. Humana shares have slid about 20% this year, while UnitedHealth shares are down 3.1%. Adding to the anxiety around Medicare Advantage’s future profitability was Humana’s report that the Centers for Medicare and Medicaid Services’ proposed payment rates for […]