CVS · 8-K · 20260805PR000097

Medical Cost Trend / Benefit Ratio

CVS HEALTH Corp · 2026-08-05 · Importance 49 · Surprise 32 · From source text

Health Care Benefits’ second-quarter medical benefit ratio declined to 87.4% from 89.9%, a 250-basis-point improvement. The improvement primarily reflected better underlying performance in the Government business and the absence of the $471 million Group Medicare Advantage premium deficiency reserve recorded in the prior year. Health care costs declined $48 million, or 0.2%, to $30.692 billion despite premium revenue increasing 2.7% to $35.119 billion. Prior-year health care cost estimates developed favorably by $1.2 billion during the first six months of 2026.

Key facts

• Health care costs (consolidated) for Q2 2026: $31,485 million versus $31,317 million in Q2 2025 source
• Prior years’ health care costs payable estimates developed favorably by $1.2 billion during the six months ended June 30, 2026 source
• Health Care Benefits medical benefit ratio (MBR) for Q2 2026: 87.4% versus 89.9% in Q2 2025, decrease 2.5 percentage points source
• Days claims payable as of June 30, 2026: 41.7 days, a decrease of 1.2 days compared to March 31, 2026 source

Impact estimates