CVS Made a Big Bet on Medicare. It's Looking Risky.

CVS Health's Medicare business has negatively impacted the company's first-quarter earnings, leading to a decrease in its guidance for 2024. The company's Medicare costs have risen faster than expected, causing a significant drop in CVS shares. CVS CEO Karen Lynch has invested heavily in the Medicare business, but the company is taking action to mitigate the issues and expects to reach its target profitability in three to four years. The Medicare woes faced by CVS reflect broader challenges in the insurance industry, with competitor Humana also experiencing earnings difficulties. [Extracted from the article]