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CVS profits top $2 billion as health plan enrollment grows

CVS Health posted more than $2 billion in quarterly profit thanks to new health plan members “across all product lines” and customers continued to rely on its stores for Covid-19 tests and vaccines during the pandemic.

CVS on Wednesday reported net income of $2.3 billion, or $1.74 per share, compared with $973 million, or 74 cents, in the prior year quarter. CVS sales increased 11% to $76.8 billion in the company’s first quarter.

The increase in revenue was boosted by health plan membership, which rose by 674,000 to 24.5 million as of March 31, “reflecting increases across all product lines,” the company said in its earnings report for the year. first trimester. CVS owns Aetna, the nation’s third-largest health insurer, and part of the company’s strategy is to encourage health plan members to use the pharmacy chain’s growing number of primary care services in their stores. MinuteClinics and HealthHUB.

New membership saw a particular boost from the highly competitive Medicare Advantage business, which topped 3.1 million members in the quarter from 2.87 million in the same period a year ago.

CVS Health’s earnings contributed to the company’s decision to improve its financial outlook for the remainder of 2022 with adjusted earnings per share now expected to be in the range of $8.20 to $8.40 compared to a previous forecast of $8.10 to $8.30. .

“Our strategy improves access to affordable, convenient and personalized health care, which benefits consumers and shareholders,” CVS Health CEO Karen Lynch said in a statement accompanying the earnings report. “Once again we showcased the power of our purpose and potential, building on our strong momentum and, as a result, raising guidance for the full year.”

CVS is still seeing a rush of customers getting vaccinated or tested for the virus as the pandemic drags on in the U.S. CVS said it administered more than 8 million vaccines and 6 million tests in the first trimester. Although the number of vaccines and tests was lower than in previous quarters, that still helped drive revenue in the pharmacy services segment of CVS’s business by 8.6% to $39.4 billion.