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Segment Reporting
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company has four reportable segments: Health Care Benefits, Health Services, Pharmacy & Consumer Wellness and Corporate/Other. The Company’s segments maintain separate financial information, and the CODM, the Company’s Chief Executive Officer, evaluates the segments’ operating results on a regular basis in deciding how to allocate resources among the segments and in assessing segment performance. The CODM evaluates the performance of the Company’s segments based on adjusted operating income. Total assets by segment are not used by the CODM to assess the performance of, or allocate resources to, the Company’s segments, therefore total assets by segment are not disclosed.

Adjusted operating income (loss) is defined as operating income (loss) (GAAP measure) excluding the impact of amortization of intangible assets, net realized capital gains or losses and other items, if any, that neither relate to the ordinary course of the Company’s business nor reflect the Company’s underlying business performance. The CODM uses adjusted operating income as its principal measure of segment performance as it enhances the CODM’s ability to compare past financial performance with current performance and analyze underlying business performance and trends. Non-GAAP financial measures the Company discloses, such as consolidated adjusted operating income, should not be considered a substitute for, or superior to, financial measures determined or calculated in accordance with GAAP.

The following is a reconciliation of financial measures of the Company’s segments to the consolidated totals:
Three Months Ended June 30, 2025
In millions
Health Care
Benefits
Health
Services (1)
Pharmacy &
Consumer
Wellness
Corporate/
Other
Consolidated
Totals
Revenues from external customers$35,831 $40,118 $22,466 $13 $98,428 
Intersegment revenues20 6,338 11,115 — 17,473 
Net investment income (loss)
407 (3)— 83 487 
Total revenues36,258 46,453 33,581 96 116,388 
Intersegment eliminations (2)
(17,473)
Total consolidated revenues$98,915 
Less: Net realized capital losses
(13)— — (14)
Cost of products sold— 43,080 27,554 — 
Health care costs30,740 1,101 — 40 
Other segment items (3)
4,223 697 4,689 483 
Adjusted operating income (loss)$1,308 $1,575 $1,338 $(413)$3,808 
Reconciliation of principal measure of segment performance to consolidated operating income:
Amortization of intangible assets (4)
494 
Net realized capital losses (5)
27 
Acquisition-related integration costs (6)
28 
Office real estate optimization charges (7)
4 
Legacy litigation charges (8)
833 
Loss on Accountable Care assets (9)
41 
Operating income (GAAP measure)2,381 
Interest expense763 
Other income(29)
Income before income tax provision$1,647 
Depreciation and amortization$419 $260 $389 $103 $1,171 
Three Months Ended June 30, 2024
In millions
Health Care
Benefits
Health
Services (1)
Pharmacy &
Consumer
Wellness
Corporate/
Other
Consolidated
Totals
Revenues from external customers$32,157 $38,694 $19,974 $15 $90,840 
Intersegment revenues18 3,479 9,864 — 13,361 
Net investment income (loss)
300 (2)— 96 394 
Total revenues32,475 42,171 29,838 111 104,595 
Intersegment eliminations (2)
(13,361)
Total consolidated revenues$91,234 
Less: Net realized capital losses
(71)— — (19)
Cost of products sold— 38,765 23,835 — 
Health care costs27,458 791 — 46 
Other segment items (3)
4,150 700 4,760 436 
Adjusted operating income (loss)$938 $1,915 $1,243 $(352)$3,744 
Reconciliation of principal measure of segment performance to consolidated operating income:
Amortization of intangible assets (4)
507 
Net realized capital losses (5)
90 
Acquisition-related integration costs (6)
102 
Operating income (GAAP measure)3,045 
Interest expense732 
Other income(24)
Income before income tax provision$2,337 
Depreciation and amortization$397 $264 $389 $101 $1,151 
Six Months Ended June 30, 2025
In millions
Health Care
Benefits
Health
Services (1)
Pharmacy &
Consumer
Wellness
Corporate/
Other
Consolidated
Totals
Revenues from external customers$70,236 $78,214 $44,019 $27 $192,496 
Intersegment revenues38 11,690 21,474 — 33,202 
Net investment income
794 11 — 202 1,007 
Total revenues71,068 89,915 65,493 229 226,705 
Intersegment eliminations (2)
(33,202)
Total consolidated revenues$193,503 
Less: Net realized capital gains (losses)
(34)15 — (29)
Cost of products sold— 83,195 53,358 — 
Health care costs59,377 2,148 — 86 
Other segment items (3)
8,424 1,379 9,484 915 
Adjusted operating income (loss)$3,301 $3,178 $2,651 $(743)$8,387 
Reconciliation of principal measure of segment performance to consolidated operating income:
Amortization of intangible assets (4)
993 
Net realized capital losses (5)
48 
Acquisition-related integration costs (6)
73 
Office real estate optimization charges (7)
10 
Legacy litigation charges (8)
1,220 
Loss on Accountable Care assets (9)
288 
Operating income (GAAP measure)5,755 
Interest expense1,548 
Other income(57)
Income before income tax provision$4,264 
Depreciation and amortization$824 $521 $773 $207 $2,325 
Six Months Ended June 30, 2024
In millions
Health Care
Benefits
Health
Services (1)
Pharmacy &
Consumer
Wellness
Corporate/
Other
Consolidated
Totals
Revenues from external customers$64,022 $75,160 $39,612 $29 $178,823 
Intersegment revenues36 7,298 18,951 — 26,285 
Net investment income (loss)
653 (2)— 197 848 
Total revenues64,711 82,456 58,563 226 205,956 
Intersegment eliminations (2)
(26,285)
Total consolidated revenues$179,671 
Less: Net realized capital losses
(81)— — (27)
Cost of products sold— 76,297 46,595 — 
Health care costs54,916 1,492 — 93 
Other segment items (3)
8,206 1,389 9,548 827 
Adjusted operating income (loss)$1,670 $3,278 $2,420 $(667)$6,701 
Reconciliation of principal measure of segment performance to consolidated operating income:
Amortization of intangible assets (4)
1,015 
Net realized capital losses (5)
108 
Acquisition-related integration costs (6)
162 
Opioid litigation charge (10)
100 
Operating income (GAAP measure)5,316 
Interest expense1,448 
Other income(49)
Income before income tax provision$3,917 
Depreciation and amortization$789 $525 $777 $198 $2,289 
_____________________________________________
(1)Total revenues of the Health Services segment include approximately $2.7 billion and $2.8 billion of retail co-payments for the three months ended June 30, 2025 and 2024, respectively. Total revenues of the Health Services segment include approximately $6.4 billion and $6.2 billion of retail co-payments for the six months ended June 30, 2025 and 2024, respectively.
(2)Intersegment revenue eliminations relate to intersegment revenue generating activities that occur between the Health Care Benefits segment, the Health Services segment, and/or the Pharmacy & Consumer Wellness segment.
(3)Other segment items for each reportable segment include operating expenses, which primarily consist of selling, general and administrative expenses. Other segment items exclude the impact of amortization of intangible assets and other items, if any, that neither relate to the ordinary course of the Company’s business nor reflect the Company’s underlying business performance.
(4)The Company’s acquisition activities have resulted in the recognition of intangible assets as required under the acquisition method of accounting which consist primarily of trademarks, customer contracts/relationships, covenants not to compete, technology, provider networks and value of business acquired. Definite-lived intangible assets are amortized over their estimated useful lives and are tested for impairment when events indicate that the carrying value may not be recoverable. The amortization of intangible assets is reflected in operating expenses within each segment. Although intangible assets contribute to the Company’s revenue generation, the amortization of intangible assets does not directly relate to the underwriting of the Company’s insurance products, the services performed for the Company’s customers or the sale of the Company’s products or services. Additionally, intangible asset amortization expense typically fluctuates based on the size and timing of the Company’s acquisition activity. Accordingly, the Company believes excluding the amortization of intangible assets enhances the Company’s and investors’ ability to compare the Company’s past financial performance with its current performance and to analyze underlying business performance and trends. Intangible asset amortization excluded from the related non-GAAP financial measure represents the entire amount recorded within the Company’s GAAP financial statements, and the revenue generated by the associated intangible assets has not been excluded from the related non-GAAP financial measure. Intangible asset amortization is excluded from the related non-GAAP financial measure because the amortization, unlike the related revenue, is not affected by operations of any particular period unless an intangible asset becomes impaired or the estimated useful life of an intangible asset is revised.
(5)The Company’s net realized capital gains and losses arise from various types of transactions, primarily in the course of managing a portfolio of assets that support the payment of insurance liabilities. Net realized capital gains and losses are reflected in net investment income (loss) within each segment. These capital gains and losses are the result of investment decisions, market conditions and other economic developments that are unrelated to the performance of the Company’s business, and the amount and timing of these capital gains and losses do not directly relate to the underwriting of the Company’s insurance products, the services performed for the Company’s customers or the sale of the Company’s products or services. Accordingly, the Company believes excluding net realized capital gains and losses enhances the Company’s and investors’ ability to compare the Company’s past financial performance with its current performance and to analyze underlying business performance and trends.
(6)During the three and six months ended June 30, 2025 and 2024, the acquisition-related integration costs relate to the acquisitions of Signify Health and Oak Street Health. The acquisition-related integration costs are reflected in operating expenses within the Corporate/Other segment.
(7)During the three and six months ended June 30, 2025, the office real estate optimization charges primarily relate to the abandonment of leased real estate and the related right-of-use assets and property and equipment in connection with the Company’s evaluation of corporate office real estate space in response to its ongoing flexible work arrangement. The office real estate optimization charges are reflected in operating expenses within each segment.
(8)During the three and six months ended June 30, 2025, the Company recorded legacy litigation charges related to two court decisions associated with its past business practices.
In April 2025, a jury found Omnicare, L.L.C. (f/k/a Omnicare, Inc., “Omnicare”) and CVS Health Corporation liable in connection with alleged violations of the federal False Claims Act related to dispensing practices by Omnicare from 2010, prior to its acquisition by the Company in 2015, through 2018. Damages were found only with respect to Omnicare. Accordingly, the Company recorded a litigation charge of $387 million during the first quarter of 2025. During the three months ended June 30, 2025, the Company recorded a charge of $542 million, reflecting penalties assessed under the False Claims Act. These litigation charges are reflected in operating expenses within the Pharmacy & Consumer Wellness segment. The Company intends to appeal the verdict once the judgment is entered.
In June 2025, a court found certain subsidiaries of CVS Health Corporation liable for damages in connection with a complaint filed in February 2014, in which the government declined to intervene, related to PBM direct and indirect remuneration reporting practices for two clients from 2010 through 2016, which the Company has since modified. In connection with this court decision, the Company recorded a litigation charge of $291 million during the three months ended June 30, 2025. This litigation charge is reflected in operating expenses within the Health Services segment. The judgment will not be final until the Court enters penalties at a later date. The Company intends to appeal the decision once the judgment is entered.
(9)During the three and six months ended June 30, 2025, the loss on the wind down and sale of Accountable Care assets represents the pre-tax loss on the divestiture of the Company’s MSSP operations, which the Company sold in March 2025, as well as costs incurred in connection with the process of winding down the Company’s ACO REACH operations. The loss on Accountable Care assets is reflected in operating expenses within the Health Services segment.
(10)During the six months ended June 30, 2024, the opioid litigation charge relates to a change in the Company’s accrual related to ongoing opioid litigation matters.