Recent and proposed changes in U.S. healthcare policy present significant headwinds for CVS Health, making it a prudent time to consider selling shares. The expiration of enhanced Affordable Care Act (ACA) subsidies at the end of 2025, along with substantial federal funding cuts to Medicaid, are expected to increase the number of uninsured Americans by millions and drive up out-of-pocket costs for those who retain coverage. These policy shifts will not only reduce demand for CVS’s core health insurance and pharmacy services but also threaten the financial stability of hospitals and clinics, particularly in rural areas—key markets for CVS’s expansion efforts.
Additionally, looming automatic cuts to Medicare funding could further squeeze margins in CVS’s growing Medicare Advantage business, while stricter administrative requirements and reduced subsidies may erode customer retention and increase operational complexity. With the U.S. healthcare landscape facing unprecedented structural changes and uncertainty, CVS Health’s revenue and profitability outlook is at risk, making its shares vulnerable in the near to medium term
Trade Plan:
- SELL >$67.00
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Disclaimer: The recommendation given is general advice only. It does not take into account your personal objectives, financial situation, or specific needs. This information should not be your sole resource when making such decisions. We strongly recommend you to seek the advice of financial, taxation, and legal professionals before finalising any investment decisions.