CVS Health Corp. has stated that a recent decision by a major health insurer to reduce its reliance on CVS Caremark pharmacy benefit manager services will have minimal impact on the company’s long-term outlook. In a statement released on Thursday, CVS confirmed that Blue Shield of California, a nonprofit health plan, has opted to work with new organizations as part of an overhaul of its prescription-drug benefit strategy. However, CVS Caremark will still provide specialty pharmacy services for Blue Shield members with complex conditions.
Specialty pharmacy currently accounts for more than 50% of pharmacy benefit spending in the marketplace, according to CVS. The company remains confident in the value it provides to customers and believes its integrated solutions will continue to be well-received.
Although this news initially led to a significant drop in CVS shares, as well as shares of other major pharmacy benefit manager operators such as Cigna Group, some analysts believe that the market reaction was exaggerated. Mizuho Securities analysts expressed skepticism about the widespread adoption of Blue Shield’s new model and stated their intent to buy CVS and Cigna shares on the dip.
CVS is focused on maintaining its position in the market and delivering quality services to its customers despite this recent development. The company’s long-term outlook remains unaffected, and it expects no impact on its 2023 guidance as a result of Blue Shield’s decision.