CVS Health Adjusts 2024 Profit Forecast Amidst Rising Medical Costs
CVS Health announced on Wednesday a downward revision of its adjusted profit forecast for 2024, citing a significant increase in medical care expenses, particularly among older adults in the United States. The surge in medical costs during the fourth quarter, primarily driven by outpatient procedures among individuals enrolled in Medicare Advantage plans, prompted the healthcare conglomerate to reassess its financial projections. According to CVS Health , the rise in medical care utilization, including procedures such as hip and knee surgeries, which were deferred during the pandemic, contributed to the elevated costs. Insurers like Humana and UnitedHealth have reported even higher expenses towards the end of 2023, indicating a broader trend across the healthcare industry. Aetna Records Slight Beat Despite Rising Healthcare Costs Aetna, the insurance arm of CVS Health, reported a fourth-quarter medical benefit ratio of 88.5%, narrowly exceeding analysts’ expectations. This ratio,...