CVS Health Announces Plans to Split Pharmacy Chain and Insurance Business
CVS Health has announced plans to separate its pharmacy chain from its health insurance and benefits management businesses. This major breakup would reverse a previous multi-billion-dollar acquisition and dismantle the vertically integrated healthcare conglomerate.
CVS Health, recognized as the largest healthcare conglomerate in the United States, has announced plans to split its pharmacy chain from its core health insurance and benefits management operations. Under the proposed separation, CVS Pharmacy will operate independently from the broader CVS Health organization, which houses the major insurer Aetna and the benefits manager Caremark.
This upcoming structural change effectively reverses the company's past multi-billion-dollar acquisition of Aetna. Some reports value the conglomerate at $117 billion, while another report notes the previous acquisition of Aetna was valued at $78 billion.
The planned breakup will dismantle the vertically integrated healthcare conglomerate that was originally created following the 2018 merger. Further details regarding the timeline and operational steps for the separation are expected as the company moves forward with the division.
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