The healthcare giant raised its earnings outlook for the year with a better-than-expected second quarter.
CVS Health checked in with a promising second quarter earnings report, highlighted by an increase in revenue and net income year over year.
The health solutions company reported net income of $2.95 billion, a significant increase from the $2.78 billion posted in the second quarter of 2021, while revenue rose to $80.64 billion, compared to $72.62 billion over the same period last year.
For the year, CVS Health has brought in $157.5 billion in total revenue, up 11% from 2021, illustrating that the company's strategy of adding more health services is delivering results.
"Despite a challenging economic environment, our differentiated business model helped drive strong results this quarter, with significant revenue growth across all of our business segments," CVS Health president and CEO Karen Lynch said in a statement. "The continued success of our foundational businesses accelerated our strategy to expand access to health services and help consumers navigate to the best site of care."
CVS Health also revealed its plans of expanding individual coverage under the Affordable Care Act to four new states in 2023.
The news was delivered in the company's earnings call, in which Lynch announced the company's Medicare Advantage membership hit the 2 million milestone in the second quarter, including dual eligibles.
"As we continue to build our individual exchange business, we're on track to expand coverage where we currently have individual exchange offerings and are obtaining final approval to add four new states to our portfolio, bringing our total to 12 states," Lynch said.
Jay Asser is the contributing editor for strategy at HealthLeaders.