CVS Health will split into two companies by early 2028. One will operate 9,000 CVS pharmacies, in-store clinics and mail-order prescriptions under the CVS Pharmacy name. The other will retain the CVS Health name and house insurer Aetna, pharmacy benefits manager Caremark, home visit services and primary care operations for older people.
David Joyner, current chief executive and chair, will run the healthcare solutions business.
The breakup ends a decade-long strategy of vertical integration. CVS Health and Aetna merged in a $70 billion deal in 2018, followed by similar consolidation moves by rivals UnitedHealth Group and Cigna. The three companies now control roughly 80 percent of the market.
Political pressure mounted against the consolidated model. Arkansas and Tennessee passed laws restricting pharmacy benefit managers from also operating retail and mail-order pharmacies. A federal bill introduced by Missouri Republican Josh Hawley and Massachusetts Democrat Elizabeth Warren proposes an antitrust crackdown. Arkansas state representative Jeremiah Moore, a Republican who sponsored his state's bill, told Politico: "For far too long, they've taken advantage of these sick people, and it's what I consider to be crony capitalism."
CVS Health generated over $400 billion in revenue last year. The company previously opposed breakup proposals, warning they would "open the door to private equity stripping the entire U.S. healthcare system for parts." Its share price fell to $44 in late 2024 before rebounding, having underperformed investor growth expectations.