CVS Splitting Into Two Business To Reduce Concerns About Vertically Integrated Operations

After spending two decades positioning itself as a vertically integrated managed care leader, CVS has announced plans to split into two publicly traded companies in a tax-free move for shareholders that is scheduled for early 2028. After that, CVS Health will include its medical insurance, pharmacy benefit management, specialty, and caregiving operations, while CVS Pharmacy will include its retail pharmacy chain and other medication dispensers. This strategic move is the biggest under the new management team led by David Joyner that took the helm in late 2024 when CVS was reeling from weak Medicare Advantage performance and facing a bloated balance sheet after major acquisitions like the Oak Street caregiving deal.