CVS profit soars while America’s seniors go broke; Obamacare is VERY good for the Rx biz
| Retail Dive – CVS Health on Wednesday said that first quarter revenues increased 34.8% to $61.6 billion from $45.7 billion in the year-ago quarter.
Net income rose to $1.4 billion from $998 million a year ago, according to a company press release.
In its retail segment, the drugstore saw revenue rise 3.3% to $21.1 billion from $20.4 billion in the year-ago quarter.
Front store revenues represent about 22.7% of total retail segment revenues, which include sales of prescription medications, patient care services, general merchandise, and health care services through walk-in clinics and long-term care facilities. Trump Backs Consumers, Ends Costly Pharmacy Gag Rule
Front store comp sales rose 0.4% in the quarter, compared to the year-ago quarter’s 1.6% rise, according to the company’s Securities and Exchange Commission filing for the period.
The company plans to close 46 underperforming retail pharmacy stores in the second quarter, according to that filing.
CVS Health’s report Wednesday represents the first full quarter that includes results from its Aetna health insurance acquisition, a huge step in its evolution from a drugstore retailer to a more integrated health care company.
Its newest retail concept, pilot HealthHUB stores, are oriented to consumer health care needs … Read more.
- Man sues CVS after wife discovers Viagra prescription
- How To Get Docs To Write More Prescriptions? Bribe Them
- Filling Rx On Amazon: BIG Problem for CVS, Walgreens
Seniors report spending $22 billion from savings to cover health-care costs
Michelle Singletary, Columnist, April 22
Washington Post – One of the biggest threats to your retirement solvency may be the cost of health care and prescription drugs.
A study by West Health and Gallup shows that in the past 12 months, seniors have withdrawn an estimated $22 billion from their long-term savings for health-care-related expenses.
The average amount people pulled out was $3,789.
The report, titled “The U.S. Healthcare Cost Crisis,” included a nationally representative survey of more than 3,500 adults.
“Americans in large numbers are borrowing money, skipping treatments and cutting back on household expenses because of high costs, and a large percentage fear a major health event could bankrupt them,” the report said.
Here are some key findings from the report.
- 10 percent of Americans 65 and older did not seek needed treatment in the past 12 months because of the cost of care.
- About 7 million seniors couldn’t afford to pay for their prescribed medication in the past 12 months.
- Eighty percent of the prescriptions senior can’t afford are used to treat somewhat serious or very serious health conditions.
- Ninety-two percent of seniors believe the cost of health care will not improve or will get worse.
But it’s not just seniors who worry about the cost of their health care.
The report found that 45 percent of Americans are afraid they will have to file for bankruptcy protection if faced with a major health crisis.
In the past year, Americans reported borrowing an estimated $88 billion to cover health-care costs, according to the West Health and Gallup report.
In a recent blog post, Fidelity Investments encourages people to consider how their budgets will be affected by rising medical and prescription expenses … Read more.