CVS Health Sees Medical Benefit Ratio Rise in 2024
CVS Health’s total revenue for the full year 2024 increased 4.2% to $372.8 billion, but within the healthcare benefits segment, the company experienced higher utilization, an unfavorable impact of Medicare Advantage star ratings payment and higher levels of care in Medicaid.
For the full year 2024, CVS Health’s healthcare benefits segment saw its medical benefit ratio increase from 86.2% to 92.5%. Although CVS Health’s total revenue for the company as a whole increased for the year compared with 2023, revenue within the healthcare benefit segment — which includes Aetna and the company's medical, pharmacy and dental services — decreased in 2024.
In a news release, company officials said the increase in the medical benefit ratio, which is healthcare costs as a percentage of premium revenue, was due to increased utilization, the unfavorable impact of the its Medicare Advantage star ratings for the 2024 payment year and higher acuity in Medicaid.
CVS Health’s total revenue for the full year 2024 increased 4.2% to $372.8 billion, which company officials said was driven by growth in both the healthcare segment and the pharmacy and consumer wellness segments.
“We have continued to see growth in key areas of our business, including the Pharmacy and Consumer Wellness segment, while we address the industry-wide challenges that have impacted our Health Care Benefits segment,” David Joyner, CVS Health President and CEO, said in the release.
This is a developing story.
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