CVS Health announced Wednesday, November 4, 2026, that it plans to split into two publicly traded companies, separating its Aetna health insurance and Caremark prescription drug businesses from approximately 9,000 retail pharmacies. The breakup would unwind a nearly decade-old strategy of combining insurance, drug benefits and pharmacy services under one corporation.
The separation, expected to be completed in the first half of 2028, would leave Aetna, CVS Caremark, CVS Specialty, Oak Street Health and Signify Health under the CVS Health name. A second company, CVS Pharmacy, would operate the retail stores, mail-order pharmacies, MinuteClinic locations and Health100 technology business.
CVS Chairman and CEO David Joyner would remain in charge of the healthcare company, while Group President Prem Shah would lead CVS Pharmacy. Existing shareholders would receive stakes in both businesses through a separation intended to be tax-free for CVS Health and its shareholders.
The decision reverses the expansion that led CVS to acquire Aetna in a $69 billion merger in 2018. The deal brought one of the nation’s largest health insurers under the same ownership as a major pharmacy chain and pharmacy benefit manager. CVS promoted the combination as a way to reduce healthcare costs by coordinating insurance coverage, prescriptions and patient care.
The acquisition faced federal antitrust scrutiny. The Justice Department required Aetna to sell its individual Medicare Part D prescription drug plan business to WellCare Health Plans before the merger could proceed, citing concerns about competition in the Medicare prescription drug insurance market.
Eight years later, CVS is moving to separate its retail pharmacies from Caremark and Aetna as federal regulators continue examining how pharmacy benefit managers influence prescription drug prices and competition.
In July, the Federal Trade Commission reached a settlement agreement with Caremark over allegations that its rebate practices helped inflate insulin list prices. Regulators accused Caremark and other major pharmacy benefit managers of favoring higher-priced drugs that offered larger manufacturer rebates, potentially increasing costs for patients whose copays or coinsurance were tied to those prices.
The proposed settlement requires Caremark to change several business practices, increase transparency and offer arrangements intended to lower patients’ out-of-pocket prescription costs and improve payment options for community pharmacies. The FTC has estimated that the changes could produce billions of dollars in consumer savings over the next decade.
CVS said the breakup follows stronger financial performance and would give its healthcare and retail pharmacy businesses greater freedom to pursue separate strategies. Joyner disputed suggestions that regulatory pressure drove the decision.
The announcement came as CVS reported third-quarter revenue of $108.4 billion, an increase of 5.4% from a year earlier, and raised its full-year earnings forecast. Despite those results, shares fell 12.5% on Wednesday, erasing nearly $15 billion in market value as investors assessed the company’s plans.
For patients and customers, the separation is not expected to create an immediate change in how prescriptions, insurance coverage or clinic services are provided. CVS said its businesses will continue operating as they do today during the transition.
Once independent, CVS Pharmacy would also be able to pursue relationships with health insurers, pharmacy benefit managers and drug manufacturers outside the current CVS Health corporate structure.
The breakup still requires final approval from CVS Health’s board, an effective registration statement with the Securities and Exchange Commission and confirmation of the transaction’s intended federal tax treatment. If those conditions are met, the two companies are expected to begin operating independently in the first half of 2028.
