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CVS Health CVS Medicaid Product Line — Premium deficiency reserve

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Other financials

Income statement

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Revenue$106.10B+7.3%
Gross profit$47.2B+5.2%
Operating income$4.7B+97.5%
Net income$3.0B+192%
EPS (diluted)$2.31+189%

Balance sheet

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Cash & equivalents$11.5B-4.1%
Total debt$74.3B+286%
Total equity$79.7B+3.0%
Total assets$253.77B-1.8%

Cash flow

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Operating cash flow$6.3B+234%
CapEx$691.0M+13.8%
Free cash flow$5.7B+338%

Valuation

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Market cap$123.06B+52.8%
Enterprise value$185.87B+112%
P/E25.2×+7.4×
P/S0.3×+0.1×

Profitability

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Gross margin44.5%-0.3pp
Operating margin2%-0.3pp
Net margin1.2%0.0pp
FCF margin2.8%

Returns & leverage

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Return on equity6.2%+0.3pp
Debt / equity0.9×+0.7×
Current ratio0.9×+0.1×

Where this comes from

Reported directly by CVS Health in its filing.

Tagged under the XBRL concept cvs:PremiumDeficiencyTestingExpenseShortDurationContractAmount.

The source filing: CVS Health’s 10-Q, filed August 5, 2026.

Filed
Aug 5, 2026, 6:33 AM EDT
Fiscal quarter
Q2 FY2026
Calendar quarter
Q2 2026
Accession
0000064803-26-000098

During the second quarter of 2026, the Company recorded a premium deficiency reserve of $15 million to health care costs related to one state in its Medicaid product line. The Company did not establish any other premium deficiency reserves during the three and six months ended June 30, 2026.

Item 1.Financial Statements

FAQ

What is CVS Health's medicaid product line — premium deficiency reserve?
CVS Health (CVS) reported medicaid product line — premium deficiency reserve of $15M in Q2 2026.
What does medicaid product line — premium deficiency reserve mean?
This metric represents the balance sheet liability established when the expected future costs of fulfilling obligations under existing Medicaid insurance contracts exceed the related unearned premiums. It serves as a buffer to ensure the company maintains sufficient capital to cover anticipated losses on these specific insurance policies. Monitoring this reserve provides insight into the long-term actuarial health and potential future liabilities associated with the company's Medicaid product offerings.

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