CVS Health cuts its 2024 forecast a third time, dragged down by health insurance struggles

CVS Health chopped its 2024 forecast for a third time this year and changed the leadership of its health insurance business where it continues to struggle with rising costs.

CEO Karen Lynch will lead the insurance segment, replacing Executive Vice President Brian Kane, who is leaving the company about a year after arriving, the health care giant said Wednesday.

Rising claims from the company's Medicare Advantage coverage have hurt CVS Health for much of this year and contributed to repeated trimmings of its outlook for 2024. Medicare Advantage plans are privately run versions of the federal government's coverage program mainly for people age 65 and older.

CVS Health also said Wednesday that it has been hurt by a drop in quality ratings for those plans and pressure from Medicaid coverage it manages in several states.