CVS Health: Aetna to pull out of health insurance exchanges

Hartford-based Aetna plans to pull out of Affordable Care Act health-insurance exchanges nationwide next year, parent company CVS Health announced on Thursday.

"We're disappointed by the continued underperformance from our individual exchange products, and recently determined there is not a near- or long-term pathway for Aetna to materially improve this position in this product," CVS Health President and CEO David Joyner said in the company's quarterly earnings call. Aetna offers ACA health plans in 17 states with enrollment of about 1 million.

CVS Health's decision to pull out of the insurance exchanges comes amid reports that President Trump will target ACA expansion as part of his efforts to cut billions from the Medicaid budget.

First-quarter results improved at Aetna, with adjusted operating income of about $2 billion, up from $732 million in the same period the year before.

Even with better results, Aetna continues to shed jobs at its Hartford headquarters, located at 151 Farmington Ave. CVS Health told the state this week it would cut an additional 55 jobs reporting to Hartford after deciding to shut down its CareFree insurance plan. The company has announced more than 700 layoffs of employees reporting to Hartford since December.

Total revenues at the Rhode Island-based CVS Health for the first quarter increased to $94.6 billion, up 7% compared to the prior year.

Tariffs and vaccine skepticism in the Trump administration were cited by CVS Health executives as potential drags on future performance earnings. President Trump's new tariffs could impact both CVS Health's retail store offerings and drug supply, Joyner said, adding that he expects tariff announcements on pharmaceuticals in the next week or so.

"We are obviously watching closely the impact both of the pharmaceutical supply chains as well as the other medical devices and supplies that will impact the other broader health system," Joyner said.

CVS Health's retail business overall looks good for 2025, Joyner said, adding a "caution" relating to vaccines and immunization. This week the Trump administration asked for a new clinical trial for an updated strain of Novavax's COVID-19 vaccine, already in widespread use.

"We anticipate volume impacts depending on government action," Joyner said of CVS Health's immunization business.