CVS plans to separate pharmacy and insurance businesses

Business · First reported 4 Nov, 00:12 · Updated 00:31

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CVS Health says it plans to divide its pharmacy operations from its insurance and pharmacy-benefit businesses, reversing its strategy of combining major healthcare operations. The reports describe the move as coming amid increased scrutiny of pharmacy-benefit managers and healthcare consolidation.

CVS Health confirmed it would split in two, separating its retail pharmacy business from its insurance and pharmacy-benefit operations.
The New York Times describes the separation as planned for 2028, with pharmacies becoming a new company and insurance and pharmacy benefits remaining together.
The split reverses the 2018 combination of Aetna and CVS’s retail pharmacy chain, a deal that Semafor says created a $117 billion company.
The reports cite political and regulatory scrutiny of healthcare consolidation and pharmacy-benefit managers as context for the proposed separation.

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Key facts

Planned separation: Pharmacies would separate from insurance and pharmacy benefits.
Timing: Planned for 2028, according to The New York Times.
2018 deal: CVS joined Aetna and its retail pharmacy chain in a deal Semafor valued at $117 billion.
CVS leadership: The New York Post says one company would retain the CVS Health name and be led by David Joyner.