Home Industries Health Services CVS names former UnitedHealthcare CEO new leader of Aetna

CVS names former UnitedHealthcare CEO new leader of Aetna

By

Katie Castellani

-

11/06/2024

CVSHealthcorp — CVS HEALTH Corp. named a new leader of Aetna Wednesday amid reports the company is considering splitting its retail pharmacy and insurance arms.

WOONSOCKET – CVS Health Corp. named a new leader of Aetna Inc. Wednesday amid reports the company is considering splitting its retail pharmacy and insurance arms. Steve Nelson will serve as Aetna’s president effective immediately and report to CEO David Joyner. Nelson most recently served as CEO of ChenMed, a value-based primary care company. He

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WOONSOCKET – CVS Health Corp. named a new leader of Aetna Inc. Wednesday amid reports the company is considering splitting its retail pharmacy and insurance arms. Steve Nelson will serve as Aetna’s president effective immediately and report to CEO David Joyner. Nelson most recently served as CEO of ChenMed, a value-based primary care company. He was also formerly CEO of UnitedHealthcare and held several leadership roles in UnitedHealthcare’s commercial and government businesses. Nelson’s appointment comes after former Karen Lynch stepped down on Oct. 18 in an agreement with the company’s board of directors. CVS removed Brian Kane as Aetna’s leader in August. Karen Lynch, former CVS CEO and president, took over the company’s insurance arm and was leading it until she stepped down in October. “Steve is an industry veteran who has successfully led multiple segments of a diverse managed care company and driven innovation and growth throughout his career,” said Joyner. “I will work closely with him and the team, building upon and accelerating the plan to advance Aetna forward.” Rising claims from the company’s Medicare Advantage coverage have hurt CVS Health for much of this year and contributed to repeated trimming of its outlook for 2024. Medicare Advantage plans are privately run versions of the federal government’s coverage program mainly for people aged 65 and older. CVS Health also said in August that it has been hurt by a drop in quality ratings for those plans and pressure from Medicaid coverage it manages in several states. The company reported a profit of $87 million in the third quarter of 2024, down from $2.26 billion a year ago because of restructuring charges and increased medical costs. CVS also posted a revenue of $95.43 billion in the period, an increase over last year’s $89.7 million. The company’s leadership has been considering splitting off with Aetna, according to a Oct.1 Reuters report. CVS has been quiet about these plans in recent weeks and a spokesperson did not immediately respond to PBN’s request for comment. CVS also announced that Prem Shah will serve as group president effective Wednesday. As group president Shah will report to Joyner and is responsible for CVS Caremark, CVS Pharmacy and the company’s Health Care Delivery businesses. Shah joined CVS in 2013 and most recently served as executive vice president and chief pharmacy officer of CVS Health. He was also president of Pharmacy and Consumer Wellness overseeing the company’s pharmacy strategy. “Prem is a strong operator and innovator with deep experience across our businesses, and in his role, he will help me and the rest of our leadership team drive improvements in our financial and operational performance across our company,” said Joyner. “I am confident in the future of our integrated model, and that Prem and Steve’s leadership will help further position us to deliver greater value from our integrated business model.” Katie Castellani is a PBN staff writer. You may contact her at Castellani@PBN.com.