CVS Health (CVS) Plans to Standardize Prior Authorization Processes to Ensure Seamless Patient Care
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Standardization of Authorization: CVS Health announced plans to align 5-10 prior authorization procedures with cross-payer clinical and technology standards by the end of 2026, which represent 40% of its total volume, ensuring patients receive uninterrupted care even when switching health plans.
- Expanded Coverage: CVS's Aetna insurance unit plans to extend this standardization to 50 of the most common prior authorization procedures under Medicare, thereby enhancing accessibility and consistency of healthcare services while minimizing service disruptions for patients across different insurance plans.
- Cost Reduction Initiatives: CEO David Joyner stated that CVS is actively reducing the number of prior authorizations, lowering hospital readmission rates and emergency room visits, and decreasing prescription drug costs, aiming to improve patient outcomes and affordability of care through these measures.
- Collaborative Policy Efforts: CVS is partnering with the Administration and Congress to deliver sensible solutions that make healthcare more affordable, demonstrating the company's strategic commitment to enhancing healthcare quality and reducing costs for patients.
Analyst Views on CVS
Wall Street analysts forecast CVS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CVS is 96.71 USD with a low forecast of 91.00 USD and a high forecast of 105.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
16 Buy
1 Hold
0 Sell
Strong Buy
Current: 81.490
Low
91.00
Averages
96.71
High
105.00
Current: 81.490
Low
91.00
Averages
96.71
High
105.00
About CVS
CVS Health Corporation is a health solutions company. The Company's segments include Health Care Benefits, Health Services, Pharmacy & Consumer Wellness and Corporate/Other. Health Care Benefits segment offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental and behavioral health plans, PDPs and Medicaid health care management services. Health Services segment provides a full range of pharmacy benefit management (PBM) solutions through its CVS Caremark operations and delivers health care services in its medical clinics, virtually, and in the home. Pharmacy & Consumer Wellness segment dispenses prescriptions in its CVS Pharmacy retail locations and through its infusion operations, provides ancillary pharmacy services including pharmacy patient care programs, diagnostic testing and vaccination administration, and sells a wide assortment of health and wellness products and general merchandise.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
