CVS plans to separate pharmacy business from insurance operations

CVS Health plans to separate its retail pharmacy and prescription businesses from its health insurance and benefits operations, dividing one of America’s largest healthcare companies into two. The move comes amid growing scrutiny of large healthcare conglomerates, which critics say have too much market power and contribute to higher medical costs.

The new CVS Pharmacy will include about 9,000 pharmacies, in-store clinics and mail-order prescriptions. CVS Health will retain insurer Aetna, pharmacy benefits manager Caremark and other care businesses; the split is planned for early 2028. The company, valued at $117bn, reported more than $400bn in revenue last year, while CVS, UnitedHealth Group and Cigna together control roughly 80% of the market.