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
•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
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 ↗
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RemovedRisk Factors
•impacts of fraud or anomalous billing on shared savings in CMS Innovation Center models;
Read it in 10-K Feb 12, 2025 at sec.gov ↗
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 ↗
RemovedRisk Factors
•challenges in rural and post-acute reimbursement due to their significant dependence on fee-for-service revenue.
Read it in 10-K Feb 12, 2025 at sec.gov ↗
RemovedRisk Factors
Our Oak Street Health business is subject to additional risks including, but not limited to, the following:
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
•Regulatory changes or consumer sentiment shift for immunizations may negatively impact national demand impacting financial 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 ↗
RemovedMD&A
•As you review the Health Services segment’s performance in this area, you should consider the following important information about the business:
Read it in 10-K Feb 12, 2025 at sec.gov ↗