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Analysis of CVS Health Corporation’s Spin-Off of its Insurance Business Segment

  • February 13, 2025

CVS Health (CVS) operates a vast network of retail pharmacies, walk-in medical clinics, and a pharmacy benefits manager (PBM) known as Caremark. CVS Health has significantly expanded its services through strategic acquisitions, most notably the acquisition of Aetna in 2018 for $70 billion. The company aims to provide integrated healthcare solutions, combining pharmacy services with health insurance and clinical care.

Retail Pharmacy: Operates CVS Pharmacy stores, offering prescription medications, health and beauty products, and convenience items.
Pharmacy Benefit Management (PBM): CVS Caremark manages prescription drug benefits for employers and health plans.
Health Insurance: Aetna provides a range of health insurance products, including Medicare Advantage plans, Medicaid services, and individual health plans.

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