CVS Health's Q2 Earnings Exceed Expectations, But Slash Full-Year Profit Forecast Due to Higher Medical Costs

Benzinga 2024-08-07

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CVS Health reported second-quarter earnings that topped expectations but slashed its full-year profit outlook, citing higher medical costs squeezing the U.S. insurance industry. The retail healthcare company has lowered its 2024 adjusted earnings forecast per share from its previous guidance. CVS' insurance segment experienced an increase in its medical benefit ratio, showing higher benefit payouts than premiums collected. Insurers have seen medical costs spike as more patients return to hospitals for procedures delayed during the pandemic.

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