CVS Health Corp (NYSE: CVS) announced on Friday that its Medicare Advantage enrollment for 2024 is surpassing expectations, with a projected membership growth of at least 800,000. The company revealed in a regulatory filing that both individual Medicare Advantage and dual-eligible special needs enrollments have exceeded anticipated levels during this year’s enrollment period.
Surprisingly, a significant contributing factor to this success is the increasing number of new sales stemming from competitor Medicare Advantage plans. CVS, being one of the largest Medicare Advantage insurers, has captured approximately 11% of total enrollment in 2023, as reported by health policy research nonprofit KFF.
Keeping up the positive momentum, CVS reconfirmed its previously announced full-year 2023 earnings guidance range of $6.37 to $6.61 per share. Moreover, the company expects its adjusted earnings per share for the same year to be in the top half of its projected range of $8.50 to $8.70. Looking ahead to the full year 2024, CVS reiterated its earnings guidance of at least $7.26 per share.
Despite experiencing a 11% decline over the past 12 months, CVS shares showed a slight premarket gain of 0.1% on Friday, while the broader S&P 500 index recorded a 23% increase.
CVS Health Corp continues to demonstrate its dominance in the Medicare Advantage market, achieving exceptional growth and reaffirming its financial projections. With its strong portfolio and competitive positioning, CVS is well-positioned to create even more significant milestones in the foreseeable future.