- The Centers for Medicare & Medicaid Services released its 2023 Star Ratings for Medicare Advantage (Medicare Part C) and Medicare Part D prescription drug plans.
- Based on the newly released 2023 Star Ratings, which will impact revenues in 2024, the percentage of CVS Health Corp's CVS Aetna Medicare Advantage members in 4+ Star plans is expected to drop to 21%, as compared to 87% based on the 2022 Star Ratings.
- The main driver of this decrease was a 1 Star decrease in the Aetna National PPO, which dropped from 4.5 to 3.5 Stars, while many other Aetna plans remain rated at 4+ Stars.
- Also Read: CVS Health Expands Home Healthcare Portfolio With $8B Signify Health Acquisition
- As per SEC filing, the Aetna National PPO is one of the largest, most diverse plans in the U.S., covering all 50 states, with more than 1.9 million members.
- The decrease in the Star Rating for the Aetna National PPO means it will no longer be eligible for CMS' quality bonus payments related to 2024.
- Although the newly issued 2023 Star Ratings do not impact payments in 2023, consumers will have access to the 2023 Star Ratings during the upcoming open enrollment period in October 2022.
- The company expects the change in the Star Ratings not to have any impact on its previously issued 2022 guidance.
- The company's goal remains to grow Adjusted EPS at low double-digit year-over-year rates in 2024.
- To achieve this goal, the company evaluates a variety of operational initiatives and capital deployment alternatives, including share repurchases, to help to offset this projected earnings headwind.
- Also See: CVS Health, Walmart Settle West Virginia Opioid Lawsuit, Walgreens To Face Trial Next Year
- Price Action: CVS shares are down 10.64% at $88.09 on the last check Friday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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