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CVS Health is splitting into two separate publicly traded companies — one housing Aetna and Caremark, and another running its 9,000 retail pharmacies. The breakup, expected by early 2028, reverses a decade-long vertical integration strategy and signals that the "bigger is better" era in healthcare may be over. Regulatory pressure and financial struggles with Aetna helped push the decision.
CVS Health is breaking up — and it's a big deal for the entire healthcare industry.
CVS announced plans to split into two publicly traded companies: one combining Aetna (insurance), Caremark (PBM), Oak Street Health, and Signify Health under the CVS Health name; and another — CVS Pharmacy — housing its 9,000+ retail stores, mail-order pharmacy, and walk-in clinics. The split is expected to be completed in the first half of 2028, with current shareholders retaining stakes in both entities.
The move is a dramatic reversal of CVS' two-decade integration strategy, which included the $78 billion Aetna acquisition in 2018. CEO David Joyner framed the breakup as coming from a position of strength, citing improved financials after years of Aetna-driven losses. Analysts also point to mounting regulatory and legislative scrutiny over vertical integration in healthcare as a key contributing factor.
By the Numbers:
Why it matters: This breakup signals a potential industry-wide reckoning with vertical integration in healthcare — a model that promised coordinated, cost-efficient care but has faced growing backlash from consumers, regulators, and lawmakers alike.
