CVS Health chops 2024 forecast as cost struggles with Medicare Advantage persist

CVS Health missed first-quarter expectations and chopped its 2024 outlook more than a dollar below Wall Street’s forecast. Shares of the health care giant plunged Wednesday morning after the company said it was still struggling with rising costs from care use in its Medicare Advantage business. Medicare Advantage plans, which are privately run versions of the federal government’s Medicare program for people age 65 and older. CVS Health said it now expects adjusted earnings to be at least $7, down its previous forecast of at least $8.30. FactSet says analysts expect earnings of $8.27 per share.