Aetna Reports Sharply Improved Medicare Advantage Cost Ratio in Second Quarter of 2026, Raising Full-Year Outlook

CVS Health, the parent company of Aetna, reported second-quarter 2026 results on August 5, 2026, showing continued recovery in the financial performance of its Medicare Advantage segment.

The company's Health Care Benefits segment posted a medical benefit ratio of 87.4 percent for the quarter. That measure compares medical claims paid to premiums collected, and a lower reading generally signals a healthier financial margin. The ratio stood at 89.9 percent in the second quarter of 2025. In the third quarter of 2024, during the period of peak losses across many Medicare Advantage insurers, it had exceeded 95 percent.

CVS attributed the improvement to disciplined premium pricing for 2026, a favorable mix of plan members, high Star ratings, and active management of medical costs. The company raised its full-year 2026 financial outlook and set a preliminary earnings floor for 2027, projecting growth of roughly 13 percent from the 2026 adjusted baseline. CVS said it entered 2027 Medicare Advantage bids assuming elevated medical cost trends would continue, signaling a cautious posture heading into the next plan year.

The turnaround at Aetna fits a broader industry pattern. UnitedHealth Group, Elevance Health, Centene, and Molina Healthcare have each reported improving Medicare Advantage margins over the past year, following a difficult stretch tied to higher-than-expected medical utilization and Part D benefit changes under the Inflation Reduction Act.