CVS Health: Pandemic Will Hurt Financial Results, Full Scope Not Yet Clear

By Anna Wilde Mathews

CVS Health Corp. warned investors Thursday that the coronavirus pandemic will hurt its financial results, but the full scope isn't yet clear.

The drugstore and insurance giant said in a securities filing it can't estimate the effect that the coronavirus will have on its performance, "but the adverse impact could be material."

Among the impacts on its businesses, CVS warned of increases in the medical costs its Aetna health insurance unit must cover without an offsetting rise in premium payments.

The company also said it expects to see effects from employer layoffs, which reduce the number of people that Aetna covers.

And the company expressed concern about the "timing and collectability" of payments from commercial and government customers hurt by the new coronavirus.

CVS said it also was seeing increases in its own costs due to the virus, as more employees work from home and it pays for support programs for customers, workers and members. The company also noted the deteriorating economies were hurting its investment portfolio.

Write to Anna Wilde Mathews at [e-mail]

(END) Dow Jones Newswires

March 26, 2020 10:42 ET (14:42 GMT)

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