The Company determined to substantially exit both the ACO REACH program and MSSP, resulting in a $247 million loss on Accountable Care assets. This decision reflects a shift in strategy regarding participation in these programs.

During the third quarter of 2024, the Company finalized an enterprise-wide restructuring plan intended to streamline and simplify the organization, improve efficiency and generate expected cost savings of over $500 million in 2025.

A jury found both Omnicare and CVS Health liable, awarding approximately $136 million due to Omnicare's conduct, which is automatically tripled by statute to approximately $407 million. The jury found no damages attributable to CVS Health.

The Company received another Section 220 demand requesting materials similar to the prior demands, which the Company is evaluating.

The Company's medical membership declined in its Medicare and individual exchange products. Medical membership disruptions may result in volatility in the Company's financial results.

Increases in utilization beyond the Company's projections may result in the Company having to record additional premium deficiency reserves within the Health Care Benefits segment during the remainder of 2025.

The Company's Medicaid business is experiencing medical cost pressures, largely driven by higher than expected acuity following the resumption of member redeterminations.

The Company continues to share with clients a larger portion of rebates, fees and/or discounts received from pharmaceutical manufacturers.

Marketplace dynamics and regulatory changes have limited the Company's ability to offer plan sponsors pricing that includes retail network “differential” or “spread.”

The Company expects benefits from ongoing enterprise-wide cost savings initiatives and investments in efficiencies, which aim to reduce the Company's operating cost structure in a way that improves the consumer experience and is sustainable.

The Company has share repurchase programs authorized by the Board of Directors, with $10.0 billion remaining under the 2022 Repurchase Program and $1.5 billion remaining under the 2021 Repurchase Program as of March 31, 2025.

Changes in conditions in the U.S. and global capital markets can significantly and adversely affect interest rates and capital market conditions which could result in increased financing costs.

Actions taken by ratings agencies, including changes in the Company's debt ratings, could impact the Company's future borrowing costs, access to capital markets and new store operating lease costs.