CVS again lowers outlook for the rest of the year

CVS Health Corp on Wednesday again cut its 2024 profit outlook, the fourth reduction this year. The reason is still high health care costs in government-sponsored insurance plans.

CVS$CVS, a major player in the health care field that also saw a significant drop in second-quarter profit, announced a multiyear plan to save $2 billion and made several changes to the management of its insurance division.

Aetna's unit, which is under CVS, has faced problems with high health care costs since late last year. Those problems have been exacerbated as older patients have caught up with delayed procedures and lower-than-expected payments from the government to administer health care have affected its margins. The cost of Medicaid plans for low-income individuals also rose due to more disabled patients gaining coverage.

CVS announced that Brian Kane, head of the health benefits unit that runs Aetna, has left the company effective immediately. His place will be taken by CEO Karen Lynch, Aetna's former…