CVS Health has chopped its 2024 forecast for a third time as the health care giant continues to struggles with its health insurance business.
The leader of that segment, Executive Vice President Brian Kane, has left the company, CVS said Wednesday, and CEO Karen Lynch would take over.
The company’s adjusted operating income from that segment plunged 39% in the quarter to $938 million, helping to drag down the company’s overall profit. CVS Health has been struggling with rising claims in its Medicare Advantage business and a drop in quality ratings for those plans, which affects government funding for them.
CVS Health said it also dealt with higher costs from people covered by the state and federally funded Medicaid program.
Overall, the company’s profit dropped more than 7% to $1.77 billion in the quarter.
CVS Health had adjusted earnings of $1.83 per share on $91.2 billion in revenue. Analysts projected earnings of $1.73 per share on $91.41 billion in revenue.
