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Health care · Pharmacies · NYSE

CVSCVS Health

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The 10-K against last year's

157 changes: 19 added, 52 removed, 84 reworded, 2 quiet changes

10-K Feb 10, 2026 vs Feb 12, 2025
Risk FactorsRedline ↓
19.0%
of the text changed · 19,588 words now
20.8%
of the text changed · 13,017 words now
Legal ProceedingsRedline ↓
32.7%
of the text changed · 4,304 words now
Accounting PoliciesRedline ↓
9.6%
of the text changed · 13,906 words now

10-K 0000064803-26-000010 (Feb 10, 2026) vs 10-K 0000064803-25-000007 (Feb 12, 2025)

The redline

The paragraph that changed most in each section

Marked against last year's 10-K: cut words struck through, new words highlighted and underlined.

Risk Factors 248 words changed in this paragraph; it is 30% similar to last year's version.
•In April 2024, 2025, CMS issued its final notice detailing final 2025 2026 Medicare Advantage payment rates. Based on CMS’ notice, Medicare Advantage rates resulted in an expected average increase in revenue for the Medicare Advantage industry of 3.70%, which includes a risk score trend increase of 3.86%. Risk scores vary among Medicare Advantage plans depending on the specific population served, so this increase does not represent an actual guaranteed payment increase. Without including the risk score trend increase, the 2025 rates result in an expected average decrease in revenue for the Medicare Advantage industry of 0.16%, though the rates may vary widely depending on the provider group and patient demographics. On January 10, 2025, CMS issued an advance notice detailing proposed 2026 Medicare Advantage payment rates. The 2026 Medicare Advantage rates, if finalized as proposed, will result in an expected average increase in revenue for the Medicare Advantage industry of 4.33%, 7.16%, which includes a risk score trend increase of 2.10%. Without including the risk score trend increase, the advance 2026 rates will result in an expected average increase in revenue for the Risk scores vary among Medicare Advantage industry of 2.23%, though the rates may vary widely plans depending on the provider group and patient demographics. CMS intends to publish the final 2026 rate announcement no later than April 7, 2025. The Company faces challenges from the impact of the increasing cost of medical care (including prescription medications), changes to methodologies for determining payments and CMS local and national coverage decisions that require the Company to pay for services and supplies that are not factored into the Company’s bids. We cannot predict how the rates will be finalized, future Medicare funding levels, the impact of future federal budget actions or ensure that such changes or actions will not have a material adverse effect on our Medicare operating results.

Source: Item 1A, 10-K 0000064803-26-000010 vs Item 1A, 10-K 0000064803-25-000007

Legal Proceedings 194 words changed in this paragraph; it is 45% similar to last year's version.
U.S. ex rel. Bassan et al. v. Omnicare, Inc. and CVS Health Corp. (U.S. District Court for the Southern District of New York). In December 2019, the U.S. Attorney’s Office for the Southern District of New York filed a complaint-in-intervention in this previously sealed qui tam case. The complaint alleges that for certain non-skilled nursing facilities, Omnicare improperly filled prescriptions beyond one year where a valid prescription did not exist and that these dispensing events violated the federal False Claims Act. In April 2025, the jury found both Omnicare and CVS Health Corporation liable. The jury awarded approximately $136 million due to Omnicare’s conduct. This amount is automatically required to be tripled by statute to approximately $407 million. Accordingly, a litigation reserve was recorded related to this matter in the three months ended March 31, 2025. The jury found no damages attributable to CVS Health Corporation. In July 2025, the Court awarded penalties against Omnicare for $542 million, for which the Company recorded an incremental litigation reserve in the three months ended June 30, 2025. The Court also found CVS Health Corporation to be jointly and severally liable for $165 million of the $542 million in penalties. The Company is defending itself against these claims. has filed an appeal to the Second Circuit. As discussed in Note 1 ‘‘Significant Accounting Policies’’, on September 22, 2025, Omnicare initiated a voluntary court-supervised Chapter 11 bankruptcy process and was deconsolidated in the three months ended September 30, 2025. The litigation reserve of $165 million that CVS Health Corporation was jointly and severally liable for remained as a liability on the consolidated balance sheet at December 31, 2025.

Source: Item 3, via Note 18 – Commitments and Contingencies, 10-K 0000064803-26-000010 vs Item 3, via Note 18 – Commitments and Contingencies, 10-K 0000064803-25-000007

MD&A 134 words changed in this paragraph; it is 64% similar to last year's version.
Although the Company believes the financial projections used to determine the fair value of the Government Health Care Delivery reporting unit were reasonable and achievable, continued utilization pressure within pressure, insufficient CMS Medicare rate increases relative to underlying medical cost trend or further reductions to the Medicare product line and continued higher acuity in Medicaid number of existing primary care centers or new primary care center openings may affect the Company’s ability to increase operating income results in the Government Health Care Delivery reporting unit at the rate estimated when such goodwill impairment test was performed. Some of the key assumptions included in the Company’s financial projections to determine the estimated fair value of its Government Health Care Delivery reporting unit include future health care costs, changes in medical membership, revenue growth rates, operating margins including the impact of annual new primary care center openings, and operating expense ratios. income. The estimated fair value of the Government Health Care Delivery reporting unit is also dependent on multiples of market participants in the health insurance care delivery industry, as well as the risk-free interest rate environment which impacts the discount rate used in the discounted cash flow method. As If the Company does not achieve its forecasts, given that the fair value and the carrying value of December 31, 2024, the Health Care Delivery reporting unit were the same following the goodwill balance in impairment charge recorded during the Government reporting unit was approximately $21.2 billion. third quarter of 2025, it is reasonably

Source: Item 7, 10-K 0000064803-26-000010 vs Item 7, 10-K 0000064803-25-000007

Accounting Policies 105 words changed in this paragraph; it is 39% similar to last year's version.
During the years ended December 31, 2024, 2023, and 2022, the The Company recorded office real estate optimization charges of $30 million, $46 million, and $117 million, respectively, primarily related to the abandonment of leased real estate and the related right-of-use assets and property and equipment in connection with the planned reduction of continuously evaluates its corporate office real estate space in response to its ongoing flexible work arrangement. arrangement and changes in employee work arrangement requirements to ensure it has the appropriate space to support the business. As a result of its assessment, the Company determined that it would vacate and abandon certain leased corporate office spaces. During the years ended December 31, 2025, 2024 and 2023, the Company recorded $10 million, $30 million, and $46 million, respectively, of office real estate optimization charges primarily related to operating lease right-of-use assets and property and equipment. The office real estate optimization charges were recorded in operating expenses within each segment.

Source: Item 8, Note 1 – Significant Accounting Policies, 10-K 0000064803-26-000010 vs Item 8, Note 1 – Significant Accounting Policies, 10-K 0000064803-25-000007

Every change, by type

Sentences and paragraphs added, removed or reworded

Sentences and paragraphs of CVS's Risk Factors and MD&A, 10-K Feb 10, 2026 against 10-K Feb 12, 2025. Each links to the text at sec.gov.

RemovedRisk Factors
•Pursuing multiple information technology improvement initiatives simultaneously could make continued development and implementation significantly more challenging.

Read it in 10-K Feb 12, 2025 at sec.gov ↗

RemovedRisk Factors
•If our suppliers or service providers fail to meet their contractual obligations to us or to comply with applicable laws or regulations, we may be exposed to brand and reputational harm, litigation and/or regulatory action.

Read it in 10-K Feb 12, 2025 at sec.gov ↗

RemovedRisk Factors
•We may experience increased medical and other benefit costs, litigation risk and customer and member dissatisfaction when providers that do not have contracts with us render services to our Health Care Benefits members.

Read it in 10-K Feb 12, 2025 at sec.gov ↗

RemovedRisk Factors
While the public health emergency related to COVID-19 expired in May 2023, COVID-19 still exists and it may, like many other respiratory viruses, wax and wane depending on geography and seasonality. The future impact COVID-19 will have on the Company and its ability to accurately forecast health care and other benefit costs is uncertain, and will depend on geographies impacted, whether new variants emerge and their severity, the availability and costs of testing, vaccination and treatment, and legal and regulatory actions. COVID-19 may also impact provider behavior, utilization trends, membership, and overall economic conditions. These impacts could be adverse and material.

Read it in 10-K Feb 12, 2025 at sec.gov ↗

RemovedRisk Factors
•The operating results and margins of our LTC business are further affected by the increased efforts of health care payors to negotiate reduced or capitated pricing arrangements and by the financial health of, and purchases and sales of, our LTC customers.

Read it in 10-K Feb 12, 2025 at sec.gov ↗

RemovedRisk Factors
•participation in CMS Innovation Center models, such as ACO REACH, which are subject to changes annually, generally in ways meant to reduce available payments to participants, including benchmarks that can be changed after the end of the performance year, and which has an end date without a plan for ongoing participation in a model by those participating;

Read it in 10-K Feb 12, 2025 at sec.gov ↗

Show the other 16
RemovedRisk Factors
•success in large, national ACOs is dependent on the collective efforts and compliance of a wide range of participating clients, and for those clients to be able to meet new and changing requirements such as changes to interoperability and reporting requirements; and

Read it in 10-K Feb 12, 2025 at sec.gov ↗

RemovedMD&A
•The Company’s effective income tax rate increased to 25.4% in 2024 compared to 25.1% in the prior year. The increase was primarily due to the mix of pre-tax income and certain non-deductible expenses, partially offset by basis differences on the disposition of certain investments and utilization of tax credits in the year ended December 31, 2024 compared to the prior year.

Read it in 10-K Feb 12, 2025 at sec.gov ↗

RemovedMD&A
•The Company expects medical membership declines in its Medicare and individual exchange products. Medical membership disruptions may result in volatility in the Company’s financial results.

Read it in 10-K Feb 12, 2025 at sec.gov ↗

RemovedMD&A
•Increases in utilization beyond the Company’s projections may also result in the Company having to record premium deficiency reserves within in the Health Care Benefits segment during 2025.

Read it in 10-K Feb 12, 2025 at sec.gov ↗

RemovedMD&A
•The Company’s Medicaid business is experiencing medical cost pressures, largely driven by higher than expected acuity following the resumption of member redeterminations. While the Company continues to work closely with its state partners to ensure the underlying trends are reflected in its premium rates going forward, it is uncertain when these pressures will be fully offset by state rate updates.

Read it in 10-K Feb 12, 2025 at sec.gov ↗

RemovedMD&A
•The Company’s individual exchange business is subject to a risk adjustment program whereby the Company estimates its ultimate risk adjustment receivable or payable based on the risk of its qualified plan members relative to the average risk of members of other qualified plans in comparable markets. Changes in the Company’s risk relative to the markets’ risk, including changes resulting from volatility in membership, could adversely impact the Company’s estimate of its risk adjustment receivable or payable.

Read it in 10-K Feb 12, 2025 at sec.gov ↗

RemovedMD&A
•Glucagon-like peptide 1 (“GLP-1”) supply disruptions, and the associated impact on product mix, could pressure the Company’s ability to deliver savings to clients and could impact the Company’s results.

Read it in 10-K Feb 12, 2025 at sec.gov ↗

RemovedMD&A
•Future financial performance will be influenced by a number of factors including competitive demand for products and services, legislative and regulatory considerations, and labor and other market dynamics, including inflation. The Company evaluates and adjusts its approach in each of the markets it serves, considering all relevant factors.

Read it in 10-K Feb 12, 2025 at sec.gov ↗

RemovedMD&A
•The Company expects benefits from ongoing enterprise-wide cost savings initiatives and investments in efficiencies, which aim to reduce the Company’s operating cost structure in a way that improves the consumer experience and is sustainable. During the third quarter of 2024, the Company finalized an enterprise-wide restructuring plan intended to streamline and simplify the organization, improve efficiency and generate expected cost savings of over $500 million in 2025. Refer to Note 3 ‘‘Restructuring’’ for actions implemented under the plan.

Read it in 10-K Feb 12, 2025 at sec.gov ↗

RemovedMD&A
•Changes in conditions in the U.S. and global capital markets can significantly and adversely affect interest rates and capital market conditions which could result in increased financing costs.

Read it in 10-K Feb 12, 2025 at sec.gov ↗

RemovedMD&A
•Actions taken by ratings agencies, including changes in the Company’s debt ratings, could impact the Company’s future borrowing costs, access to capital markets and new store operating lease costs.

Read it in 10-K Feb 12, 2025 at sec.gov ↗

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