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CVS Health Plans to Split Into Two Companies, Keeping Aetna and Caremark Together
The corporate parent of one of the largest Medicare Advantage insurers announced it will separate its insurance and pharmacy benefits arm from its retail drugstores by 2028, reversing roughly a decade of vertical integration.
By the Goodsurance editorial teamNovember 5, 2026
CVS Health announced on November 4, 2026 that it intends to separate into two independent, publicly traded companies, reversing roughly a decade of vertical integration that combined health insurance, pharmacy benefits management, and retail pharmacy under one corporate roof.
One entity would retain the CVS Health name and house the company's insurance arm Aetna, the Caremark pharmacy benefits manager, CVS Specialty, Oak Street Health, and Signify Health, the in-home care and diagnostics business. The second company, to be called CVS Pharmacy, would hold the retail store chain, mail-order pharmacy, MinuteClinic walk-in locations, and a health technology unit.
CVS Health is breaking into two companies. Aetna and its Medicare Advantage plans stay on one side; the retail pharmacies go on the other. Here is what that means for enrollees.
The separation is expected to close in the first half of 2028, subject to board approval, regulatory clearances, and confirmation that the transaction would qualify as tax-free to shareholders.
Aetna ranks among the largest Medicare Advantage insurers in the country and is currently selling 2027 plans during the annual open enrollment period, which runs through December 7. CVS said existing plan operations, including Medicare Advantage coverage, are expected to continue as normal throughout the separation process.
The announcement follows intensifying congressional scrutiny of large health care conglomerates that hold insurance, pharmacy benefits management, and retail operations together. Medicare Advantage enrollees currently in Aetna plans, or shopping for one this fall, would remain with the continuing CVS Health insurance entity under the proposed structure.
In plain words
CVS Health, one of the biggest health care companies in the country, said it will split into two separate businesses. One will keep the Aetna health insurance company and the Caremark prescription drug manager. The other will keep the CVS drug stores and walk-in clinics. The split is expected to happen in 2028. Aetna sells Medicare Advantage plans to millions of older adults. The company says those plans will keep working as normal while the split is under way. If you chose an Aetna Medicare plan this fall during open enrollment, your coverage is not expected to change because of this announcement.
Understand the basics first
Source: KFF Health News
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