But what's happening with this turnaround CBS Health. This stock has become the best performer in the healthc care sector under CEO David Joiner and shot up another 2% today as management laid out some bullish long-term earnings targets. Earlier today, we welcome David Joiner, the president CEO of CVS Health to find out more.Check it out. David, some people come on, they got a narrative. They tell you some story and you get excited and then it doesn't doesn't happen.You I believe are actually transforming t ...

Key Takeaways CVS wants investors to know it sees bigger profits ahead, and has new AI plans. Shares of CVS Health (CVS) climbed about 2% Tuesday after the health conglomerate lifted its full-year forecast and outlined an AI strategy to drive higher engagement. The parent of CVS Pharmacy, benefits manager CVS Caremark, and Aetna insurance said it now sees full-year adjusted earnings per share of $6.60 to $6.70, up from an earlier forecast of $6.55 to $6.65. It anticipates revenue of at least $400 billion co ...

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Core Insights - Curaechoice has partnered with CVS Caremark as its pharmacy benefit manager, aiming to reduce prescription drug costs for its members [1][2] - The collaboration will enable Curaechoice members to access CVS Caremark's extensive network of 65,000 pharmacies starting January 1, 2026 [1] - The partnership is expected to help self-insured employers manage healthcare spending while providing quality care to employees [3] Company Overview - Curaechoice specializes in No-Cost Benefits Optimization, focusing on providing comprehensive healthcare solutions without copays, deductibles, or co-insurance [4] - CVS Caremark, a subsidiary of CVS Health, is recognized for its innovation and affordability in prescription drug delivery, operating a broad network of retail and mail-order locations [4] Market Context - Pharmacy costs account for nearly one-third of an employer's total healthcare spending, highlighting the significance of the partnership in addressing rising healthcare expenses [2] - The collaboration is positioned as a response to the increasing financial pressures faced by families, including costs related to groceries, gas, childcare, and healthcare [3]

Core Insights - Eli Lilly's CEO, Dave Ricks, criticized pharmacy benefit managers (PBMs) for inflating insulin prices, claiming they create a detrimental incentive structure that leads to high list prices while the net price remains low [1][2][5] - Ricks highlighted that the list price for Lilly's insulin reached $275, while the actual net price was around $40, indicating a significant disparity caused by PBMs profiting from the price spread [2][3] - The company's response to this issue included launching a low-priced "shadow generic" insulin, which faced pushback from PBMs, prompting the creation of LillyDirect, a direct-to-consumer platform to bypass the PBM system [3][5] Industry Context - Mark Cuban, founder of Cost Plus Drugs, echoed Ricks' sentiments, describing PBMs as having a "stranglehold" on pricing and contributing to inflated healthcare costs [4][5] - Both Ricks and Cuban's criticisms suggest a growing challenge to the PBM business model, which is perceived to inflate costs for vulnerable patients [5] Stock Performance - Eli Lilly's stock closed at $988.62, reflecting a year-to-date increase of 27.06% and a one-year increase of 20.73% [6] - The stock has shown a strong price trend across short, medium, and long terms, despite a poor value ranking [6] PBM and Pharma ETF Performance - Notable performances of PBMs and pharmaceutical ETFs include: - CVS Health Corp. with a year-to-date performance of 80.62% and one-year performance of 47.83% - Cigna Group with a year-to-date performance of -2.36% and one-year performance of -21.15% - UnitedHealth Group with a year-to-date performance of -35.10% and one-year performance of -46.73% [7] - Various pharmaceutical ETFs also showed positive year-to-date performances, with the Invesco Pharmaceuticals ETF at 22.30% and the KraneShares MSCI All China Health Care Index ETF at 37.64% [8]

CVS Health Corporation (NYSE:CVS) is one of the stocks Jim Cramer recently shared thoughts on. Cramer discussed the company’s “reinvention,” as he said: “Sadly, this tale of reinvention doesn’t happen very often, but when it does, I celebrate it. For example, I really like what David Joyner’s doing with the turnaround at CVS. Value creation, there’s major covering the front and back of the store, along with the incredible comeback in health insurance.” A person with stock market data on a laptop. Photo ...

Financial Data and Key Metrics Changes - The Cigna Group reported revenues of $69.7 billion and adjusted earnings of $7.83 per share for the third quarter of 2025, reflecting sustained growth despite a dynamic market environment [6][33]. - The company recorded a net after-tax special item benefit of $61 million, equating to $0.23 per share [3]. Business Line Data and Key Metrics Changes - Evernorth Health Services achieved revenues of $60.4 billion, with pre-tax adjusted earnings of $1.9 billion, while specialty and care services revenues increased by 10% to $26.3 billion, and pre-tax adjusted earnings rose by 11% to $928 million [33][34]. - Cigna Healthcare reported third quarter revenues of $10.9 billion and pre-tax adjusted earnings of $1 billion, with a medical care ratio of 84.8% driven by an updated view of risk adjustment [35][36]. Market Data and Key Metrics Changes - The company noted that generic drugs account for 90% of all prescriptions in the U.S., with prices being one-third cheaper than in other countries, while brand name medications continue to rise significantly in cost [8][9]. - The median price for new FDA-approved drugs is projected to be approximately $390,000 for a treatment course in 2025, highlighting the affordability challenges in the market [9]. Company Strategy and Development Direction - The Cigna Group is focusing on a new rebate-free model for pharmacy benefits, aiming to improve healthcare affordability and streamline the patient experience [7][12]. - The company is strategically investing in expanding its addressable markets, including a recent investment in Shields Health Solutions to enhance specialty capabilities [6][19]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth despite challenges, reaffirming an adjusted EPS outlook of at least $29.60 for 2025 [16][33]. - The company anticipates margin pressure in the pharmacy benefit services segment due to strategic client renewals and investments in the new model, but expects long-term growth to remain strong [15][30]. Other Important Information - The company is committed to supporting independent pharmacists and ensuring fair pricing reimbursements, particularly in rural communities [14]. - Cigna Healthcare's growth is expected to be at the higher end of its long-term targets, with a focus on enhancing affordability and access to care [38]. Q&A Session Summary Question: Clarification on rebate guarantees and renewal pricing - Management clarified that the new rebate-free model is designed to be transparent and fee-based, aligning with regulatory priorities, and that the long-term growth algorithm for Evernorth remains intact despite short-term pressures [45][46]. Question: Magnitude of the 2026 decline in pharmacy benefit services - Management indicated that the decline in pharmacy benefit services income is expected to be driven by large client renewals and transitional investment spending, with specific figures not provided but a directional outline given [58][62]. Question: Adoption likelihood of the new model by employers - Management expressed confidence that the new model will be well-received by employers, emphasizing its benefits in terms of budget certainty and employee satisfaction [68][69]. Question: Profitability of large contracts - Management stated that while large contracts may have lower margin profiles, they do not operate at a loss and are strategically important for the company [73][76].

Core Viewpoint - Cigna Group plans to eliminate prescription drug rebates in many of its commercial health plans by 2027, transitioning to a rebate-free model to lower patient costs at the pharmacy counter through up-front discounts instead of delayed rebates [1][2][3] Group 1: Changes in Cigna's Business Model - The elimination of rebates is expected to create a significant shift in the financial dynamics among drugmakers, insurers, and employers, with the value of drug rebates and discounts reaching $356 billion last year [3][4] - Cigna aims to provide an average 30% discount on brand medications for patients with high-deductible plans, enhancing affordability [6] - The initial rollout will affect approximately 2 million fully insured health plan members, with a broader implementation for Express Scripts clients starting in 2028 [7] Group 2: Market Context and Reactions - The decision aligns with the Trump administration's efforts to reduce drug prices, as Cigna's CEO praised Trump's actions to lower costs for brand-name medicines [8][9] - Cigna's Express Scripts is the largest pharmacy benefit manager (PBM), facing scrutiny from lawmakers and the Federal Trade Commission regarding the rebate system's impact on drug prices [8][10] Group 3: Industry Implications - Other PBMs, such as Optum Rx and CVS Caremark, are also adapting their models in response to regulatory pressures, with some moving towards passing rebates directly to clients [11] - Cigna will need to renegotiate contracts with drugmakers and health plans to implement the new model, which is expected to be welcomed by drugmakers as it may encourage patients to fill prescriptions [12][13] - The goal is to have half of employer and health plan clients adopt the new model within three years, with Express Scripts serving around 100 million members [13] Group 4: Future Considerations - While eliminating rebates could potentially raise premiums for some clients, Cigna's leadership does not anticipate an increase in costs [14] - The company acknowledges that rebates will still exist for the foreseeable future, but aims to transition to a more transparent pricing approach [15] - Cigna has also opened new revenue streams from drugmakers through fees that resemble rebates but are structured differently, indicating a shift in compensation models [16][17]

Core Insights - Evernorth, the health services division of The Cigna Group, has introduced a new rebate-free pharmacy benefit model aimed at lowering costs and improving transparency for Americans while supporting local pharmacies [1][2][12] Summary by Sections New Pharmacy Benefit Model - The new model eliminates the complex post-purchase rebate process, allowing discounts negotiated with drug companies to be available upfront to consumers [2][3] - This approach is expected to reduce monthly costs for brand-name prescriptions by an average of 30% for individuals with high-deductible health plans [3][4] Cost Reduction and Transparency - Evernorth's model ensures that Americans pay the lowest available cost for both brand-name and generic medicines by leveraging technology to compare multiple pricing options [4][5] - For example, a negotiated cost of $22 (70% off the list price) and a cash discount of $20 illustrate the potential savings for consumers [5] Support for Local Pharmacies - Evernorth is adopting a new reimbursement model that compensates local pharmacies based on their costs plus a dispensing fee, recognizing the essential clinical services they provide [9][10] - This model will be implemented across all in-network pharmacies starting in 2026, ensuring that local pharmacies have the resources to excel in patient care [11] Commitment to Innovation - The new pharmacy benefit model builds on Evernorth's legacy of driving affordability and access to medications, including the use of generics and biosimilars [12][13] - The company aims to continue innovating to improve health outcomes for millions of Americans [12]

Core Insights - CVS Health is experiencing a strong start in the 2026 Pharmacy Benefit Manager (PBM) selling season, with Caremark maintaining a historical retention rate in the upper 90% range [1][9] - The partnership with Novo Nordisk aims to enhance access to Wegovy, a GLP-1 drug, for members at a more affordable price [2][9] - CVS anticipates a potential 10-15% year-over-year savings in the anti-obesity medication sector for members utilizing its formularies [3] - The removal of Humira from major formularies has led to over $1 billion in savings for CVS clients by promoting the use of biosimilars [4] - Starting January 1, 2026, CVS will provide outpatient prescription drug benefits to approximately 587,000 CalPERS members [5][9] - CVS Health shares have increased by 67.4% year-to-date, contrasting with a 1% decline in the industry [8] - The company's forward five-year price/earnings (P/E) ratio stands at 10.87X, below the industry average of 15.05X, indicating a favorable valuation [10] Company Developments - CVS Health's Caremark unit is effectively driving down prescription and pharmacy costs through increased competition [1] - The integration of Wegovy into CVS's weight management program has resulted in participants achieving double-digit percentage weight loss at 12 months [2] - CVS's strategic formulary actions are designed to enhance affordability and access to essential medications [3][4] Competitive Landscape - UnitedHealth Group's Optum Rx has raised reimbursement minimums for branded drugs to support independent pharmacies, highlighting competitive dynamics in the pharmacy sector [6] - Amazon's expansion of its logistics services may impact the competitive landscape for pharmacy benefit management and drug distribution [7] Financial Estimates - Current analyst estimates for CVS's earnings per share (EPS) for 2025 and 2026 are projected at 6.34 and 7.13 respectively, indicating stable growth expectations [11]