CVS Health Navigates Rising Insurance Costs with Strong Fourth Quarter Results

CVS Health Corporation (NYSE: CVS) reported robust fourth quarter and full-year 2024 results, demonstrating the company's ability to navigate rising insurance costs and maintain growth in key segments. The company's integrated business model, which combines retail pharmacies, MinuteClinic healthcare services, pharmacy benefits management, and health insurance, has proven to be a resilient strategy in the face of industry-wide challenges.



CVS Health's fourth quarter revenues increased by 4.2% year-over-year to $97.7 billion, driven by growth in the Pharmacy and Consumer Wellness segment and the insurance unit. The company's adjusted earnings per share (EPS) of $1.19 surpassed analysts' expectations of $0.91, reflecting the company's ability to manage costs and maintain profitability despite higher medical costs in its insurance business.



CVS Health's integrated business model has allowed it to uniquely deliver a simpler, connected experience that saves time, saves money, and improves health. The company's Pharmacy and Consumer Wellness segment, which includes retail pharmacies and other pharmacy services, has shown resilience despite reimbursement pressures. In the fourth quarter of 2024, the segment reported a 7% increase in sales to $33.51 billion, driven by a 3.3% increase in prescription volume (CVS Health, 2025). This growth can be attributed to the segment's ability to manage costs effectively, as evidenced by improved drug purchasing economics, which helped offset headwinds from lower reimbursements.

The company's Health Services segment, which includes Caremark, one of the nation's largest pharmacy benefits managers, has maintained profitability despite the loss of a major client. In the fourth quarter of 2024, the segment generated $47.02 billion in revenue, down 4% compared to the same quarter in 2023. Although the segment processed 16.9% fewer pharmacy claims due to the client loss, improved purchasing economics helped maintain profitability (CVS Health, 2025). This demonstrates the segment's robust operational leverage and ability to adapt to changing market conditions.

CVS Health's integrated model has also allowed the company to address industry-wide challenges in its Health Care Benefits segment. The company has implemented several strategies to improve the quality of care and reduce costs, including focusing on preventive care and chronic disease management through initiatives such as MinuteClinic and pharmacy benefits management services. Additionally, CVS Health has been expanding its Medicare Advantage business and working to improve its Medicare Advantage star ratings to attract more customers and improve the quality of care.



In conclusion, CVS Health's integrated business model has proven to be a resilient strategy in the face of rising insurance costs and industry-wide challenges. The company's ability to navigate these pressures and maintain growth in key segments demonstrates the strength of its integrated offerings and interconnected services. As CVS Health continues to execute its turnaround plan and adapt to changing market conditions, investors can be confident in the company's long-term prospects.