Aetna executive ousted as CVS’ Medicare Advantage woes drag into second quarter

CVS has cut its earnings guidance for the third time this year due to rising medical costs, particularly from its Aetna insurance division. CVS plans to cut $2 billion over the next few years and has fired its top insurance executive. Further, CVS expects adjusted earnings per share to be $6.40 to $6.65 this year, down from a previous expectation of at least $7. Additionally, Brian Kane, CEO of Aetna, has been fired due to the poor performance of the division.