CVS has already taken steps to rightsize its insurance business, which includes plans for the Affordable Care Act, Medicare Advantage and Medicaid, as well as dental and vision. The company exited certain unprofitable health plans in 2024, and hiked premiums to enroll fewer members this year. In a research note, Cantor Fitzgerald analysts said they are "incrementally more confident" that CVS will improve margins in its Medicare Advantage business and return to "normal levels" by 2027. CVS has said it wants to get the Medicare Advantage business back to a 3% to 5% margin. They were in the negative 4.5% to 5% range at the end of 2024, CVS CFO Tom Cowhey said during an earnings call on Wednesday. CVS and other insurers such as UnitedHealth Group and Humana have seen medical costs spike over the last year as more Medicare Advantage patients return to hospitals for procedures they delayed during the pandemic.