CVS plans to split its $117 billion healthcare empire into two companies
CVS Health plans to split its massive healthcare business in two by 2028.
The short version
- The move undoes its $78 billion purchase of insurance giant Aetna.
- The split separates roughly 9,000 retail drugstores from its insurance unit and pharmacy benefit manager.
Why it matters to you. For you, the massive corporate divorce could change how prescription drug prices are negotiated and how your local pharmacy fills your monthly prescriptions.
Check your local corner store. CVS Health, the massive drugstore and health insurance chain, just announced plans to split into two separate public companies by the first half of 2028 in what would be one of the largest corporate breakups in history, according to CNBC.
The move reverses the company's massive $78 billion acquisition of its insurer, Aetna, and completely dismantles the vertically integrated healthcare conglomerate it built in 2018. The plan will separate CVS and its roughly 9,000 retail pharmacies from its major insurance business and pharmacy benefit manager, Caremark, which is one of the nation's three largest prescription benefit managers.
David Joyner, the CEO of CVS Health, said the move aims to improve affordability and care coordination from a position of strength. Shares have jumped roughly 70 percent since Joyner took the helm in October 2024, bringing the company's market value to $117 billion.
The insurance and pharmacy benefit business will keep the CVS Health name and be run by Joyner. The retail pharmacy company will be called CVS Pharmacy and be led by Prem Shah, who is currently group president of CVS Health. Existing CVS shareholders will own shares in both independent companies after the split is complete.
The company's pharmacy business raked in $37.66 billion in 2025 sales, while its insurance unit booked $36.29 billion in revenue and its healthcare services segment generated $51.24 billion. Michael Cherny, an analyst at Leerink Partners, called the split a complete shock in a note to clients.
The potential breakup also comes as pharmacy benefit managers face mounting bipartisan scrutiny in Washington and across states over opaque pricing practices.
