CVS will be pulling Aetna out of the ACA Exchange Business in 2026. the Exchange has caused significant losses for the company from 2022-2024. Its refocus allows for resources to be placed in areas that are likely to be more profitable and allow for a competitive advantage which the ACA exchange did not allow for.-states have different rules,
-80% of premiums had to go towards care,
-thin profit margins due to High Medical Loss Ratios of 87%,
-Low Enrollment
Since late 2024 CVS has made strong strides trending up. Q1 2025 earnings were good as well with net income totaling $1.8 Billion. Couple this with recent rise in healthcare stocks thanks to news that Warren Buffet of Berkshire Hathaway purchased 5 Million shares of
UNH With all things being constant in current market conditions
CVS can rise further in a wave 1 up breaking out of this two year wave 2 down.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.