CVS CEO David Joyner says Aetna has finally gotten its arms around rising medical costs, offering a reassuring signal ahead of Q2 earnings. After a brutal 2024 that saw Aetna post a nearly $1B operating loss, the insurer rebounded with $1.8B in operating income in 2025. CVS stock is now trading at its highest levels since 2022.
CVS CEO David Joyner told attendees at an Economic Club event in Washington, D.C., that Aetna — the company's insurance arm — has finally gotten a grip on projecting and pricing for healthcare costs after a rough few years. The comments, made about a month before CVS is set to report Q2 earnings on August 5, are likely a welcome signal for investors after a period of significant financial pain.
Aetna's struggles began in late 2023 when insurers across the board were blindsided by unexpected cost spikes, particularly in Medicare Advantage (MA) plans. CVS was hit especially hard after aggressively expanding MA benefits to attract new members — a strategy that backfired badly. The company responded by slashing benefits, exiting unprofitable markets, and pulling out of the ACA marketplace entirely for 2026.
Beyond cost management, Joyner flagged Washington policy uncertainty as the company's biggest ongoing challenge, noting he has testified before Congress four times on healthcare affordability and the role of CVS's pharmacy benefit manager, Caremark.
By the Numbers
Why it matters: Aetna's recovery is a bellwether for the broader health insurance industry, which is still navigating post-pandemic utilization uncertainty. If CVS can demonstrate sustained cost discipline, it could restore confidence in the MA market and signal a path forward for other struggling insurers.
