Stephen Baxter's questions to CVS Health Corp (CVS) leadership • Q4 2024
Question
Stephen Baxter asked for an update on where Medicare Advantage margins finished for the full year 2024, what margin level is assumed in the 2025 guidance, and the expected progression of MA margin recovery beyond 2025.
Answer
CFO Tom Cowhey stated that 2024 Medicare Advantage margins ended in the negative 4.5% to 5% range. He confirmed that while margins are expected to improve in 2025, the business will remain loss-making in the current outlook. Executive Steve Nelson added his commitment to returning the business to target margins over a multiyear period, citing early progress in forecasting, pricing discipline, and operational execution.