Latest news with #CVS
Business Insider
3 hours ago
- Business
- Business Insider
CVS Snatches CalPERS Pharmacy Contract from UnitedHealth
CVS Health (CVS) has secured a major healthcare deal, winning a multi-year pharmacy benefits contract with CalPERS, outbidding rival UnitedHealth (UNH). The deal marks a significant win for CVS's Caremark unit and could shift competitive dynamics in the pharmacy benefits management (PBM) market. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Notably, CalPERS (California Public Employees' Retirement System) is the largest public pension fund in the U.S., serving over 2 million public employees, retirees, and their families in California. More Details About the Deal CalPERS is moving from OptumRx, a UnitedHealth subsidiary, to CVS Caremark, citing CVS's more competitive pricing. The pension fund also noted that CVS stood out among other bidders for its strong commitment to managing pharmacy costs and upholding high clinical standards. CVS will take over this role starting January 1, 2026. Under the agreement, CVS is required to meet specific cost and quality goals; failing to do so could cost the company up to $250 million in performance-based penalties. Meanwhile, the five-year deal will give outpatient prescription drug coverage to around 587,000 CalPERS members, or about 40% of those receiving health benefits through the system. CVS vs. UnitedHealth CVS Health has made a strong comeback in 2025 after facing several tough years. Year-to-date, CVS stock has gained over 40%. Additionally, CVS Health reported strong first-quarter results for 2025 in May, with revenue rising 7% year over year and adjusted earnings per share jumping to $2.25, up from $1.31 the previous year. The company also raised its full-year adjusted EPS forecast to $6.00–$6.20, up from a prior range of $5.75–$6.00, and now expects to generate about $7 billion in cash flow. On the other hand, UnitedHealth has been struggling with multiple challenges. In April, the company reported unexpectedly high medical costs in its Medicare division. By May, it suspended its full-year financial forecast, and CEO Andrew Witty stepped down suddenly for personal reasons. So far this year, UnitedHealth shares have fallen more than 40%. Which Healthcare Stock Is a Strong Buy, According to Analysts? Using the TipRanks Stock Comparison tool, we compared these healthcare stocks. Among these companies, CVS stock has earned a Strong Buy rating from analysts, while UNH carries a Moderate Buy. In terms of share price appreciation, CVS' average stock price target of $81.27 offers an upside potential of 27% from current levels.
Yahoo
3 days ago
- Business
- Yahoo
Jefferies Maintains ‘Buy' Rating on CVS Health Corporation (CVS); Raises PT
Billionaire Kerr Neilson has bought over $290,715 worth of shares in CVS Health Corporation (NYSE:CVS), representing 0.02% of his stock portfolio, securing the company a spot in . A team of actuaries and engineers at a computer looking at the data and finding the best reinsurance solution for a client. On June 30, 2025, Jefferies increased its price target on CVS Health Corporation (NYSE:CVS) from $74 to $80. The analyst attributed this to the management's conservative future guidance, along with expectations for potential upside in the company's EPS. Despite the sector headwinds, CVS remains one of the large-cap healthcare picks in the analyst's portfolio. For Q1 2025, CVS Health Corporation (NYSE:CVS) reported $95 billion in revenue, which was a 7% YoY increase. Meanwhile, its adjusted EPS was $2.25 per share and adjusted earnings were $4.6 billion. As per the company's full-year guidance, EPS is estimated within the range of $6 and $6.2. CVS Health Corporation (NYSE:CVS) offers insurance, pharmacy benefit management (PBM), and retail pharmacy services. It does so through its Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments. While we acknowledge the potential of CVS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 7 Best Stocks to Invest in for a Quick Return and 10 Best Cheap Stocks to Buy According to Billionaire Ray Dalio. Disclosure: None. Sign in to access your portfolio
Yahoo
7 days ago
- Business
- Yahoo
CVS Omnicare ordered to pay $949 million in government fraud case
This story was originally published on Healthcare Dive. To receive daily news and insights, subscribe to our free daily Healthcare Dive newsletter. A federal judge has ordered CVS to pay $948.8 million in penalties and damages in a whistleblower case alleging that the company's Omnicare division illegally charged the U.S. government for prescription drugs. Manhattan Judge Colleen McMahon imposed a $542 million penalty for what she called 'very big fraud' in her Monday order, and awarded $406.8 million in damages — three times the $135.6 million that a jury awarded in the spring, as required under the False Claims Act. Omnicare filed more than 3.3 million false claims between 2010 and 2018, according to court documents. CVS, which acquired the pharmacy benefits manager in 2015, denied the allegations and said it planned to appeal McMahon's decision. A former Omnicare pharmacist filed the lawsuit in 2015 accusing the PBM of improperly billing Medicare, Medicaid and the military's Tricare program for over $135 million in drugs that weren't actually covered by the programs. Omnicare — the largest long-term care pharmacy services provider in the U.S. — fraudulently dispensed drugs to elderly and disabled people in long-term care and assisted living facilities without valid prescriptions, according to the complaint. The Department of Justice joined the suit in 2019, and a jury ruled in favor of the government last spring. The False Claims Act allows whistleblowers to bring complaints on the government's behalf and share in potential damages. The law is a key weapon in the government's arsenal for combating fraud, and the driving force behind a major share of healthcare recoveries. The law requires tripling of damages, a stipulation that inflated CVS' penalty. The company argued that the $948.8 million award violates the Constitution's prohibition against excessive fines, but McMahon did not agree. 'Admittedly [the fine] is a very big number. But this was a very big fraud on the Government, one that lasted over almost a decade, and one that Omnicare was aware of but avoided taking steps to correct,' the judge wrote. And CVS is getting off relatively easy, McMahon noted. According to her order, following the letter of the FCA, which outlines a minimum penalty of $5,000 for every false claim, would result in an 'astronomical' minimum penalty of $26.9 billion on top of the damages. Still, CVS plans to appeal the judgment. 'This lawsuit centered on a highly technical prescription dispensing record keeping issue that was allowed by law in many states. The dispensing practices referenced were limited to Omnicare, ended in 2018, were used by many others in the industry at the time, and were accepted by CMS,' a spokesperson for the company said. 'There was no claim in this case that any patient paid for a medication they shouldn't have or that any patient was harmed. The decision on penalties is unconstitutional, especially given the fact that there is no evidence that a single patient suffered harm,' they added. If the healthcare juggernaut's appeal fails, the penalty is small hit in comparison to its annual revenue, which reached $372.8 billion in 2024. Still, it would mean a financial speedbump for CVS, which is struggling to adjust to reimbursement pressures in its legacy retail pharmacy business and higher medical costs for members in its Aetna health plans. Recommended Reading DOJ charges more than 300 in $14.6B healthcare fraud bust
Boston Globe
7 days ago
- Business
- Boston Globe
CVS ordered to pay $949m over invalid prescriptions in federal lawsuit
Omnicare specializes in providing services to assisted-living communities, nursing homes, and other long-term care settings. The acquisition was CVS's attempt to broaden its presence in the specialty pharmacy business as it sought to capitalize on an aging population. Omnicare is now the largest long-term care pharmacy services provider in the country. Get Rhode Map A weekday briefing from veteran Rhode Island reporters, focused on the things that matter most in the Ocean State. Enter Email Sign Up Uri Bassan, a former Omnicare pharmacist in Albuquerque, N.M., first filed the suit in 2015. The US Department of Justice joined the suit in 2019. Both parties accused Omnicare of improperly billing Medicare, Medicaid, and Tricare prescriptions for patients in assisted-living communities, group homes, and other long-term care facilities without valid prescriptions. Advertisement CVS plans to appeal. 'This lawsuit centered on a highly technical prescription dispensing record keeping issue that was allowed by law in many states,' said Ethan Slavin, a spokesman for CVS, in a statement to the Globe on Thursday. 'The dispensing practices referenced were limited to Omnicare, ended in 2018, were used by many others in the industry at the time.' Slavin said the practices were accepted by the federal Centers for Medicare & Medicaid Services. Advertisement Slavin said there was no claim in the case that 'any patient paid for a medication they shouldn't have or that any patient was harmed.' A jury 'False claims in the healthcare industry cost every American,' said US Attorney Jay Clayton The False Claims Act allows whistleblowers to bring complaints on the federal government's behalf. The law is key for the government to combat fraud. The law requires tripling of damages, which inflated CVS' penalty. But the company argues the award violates the Constitution's barring of excessive fines. 'The decision on penalties is unconstitutional, especially given the fact that there is no evidence that a single patient suffered harm,' said Slavin. 'We plan to appeal once the judgment is entered.' In 2024, CVS Health reported McMahon wrote in her order that while the fine 'is a very big number,' this 'was a very big fraud on the government, one that lasted over almost a decade, and that Omnicare was aware of but avoided taking steps to correct.' Alexa Gagosz can be reached at
Yahoo
09-07-2025
- General
- Yahoo
'Unschooling' Is the Twist on Homeschooling That Lets Kids Take the Lead
Unschooling is an educational trend that allows kids to choose the topics they'd like to learn, and their own method of learning, whether its through art, outdoor play, or other activities For homeschoolers, unschooling is an intriguing twist on education that gives kids independence and agency However, education experts warn that there might be downsides to this trend—and that its not a good fit for every familyOn the list of things as long as CVS receipts that parents have to worry about, their child's education is probably near the top. Most parents want their children to grow up to have common sense, the ability to think critically, to read and write, at the very minimum. But traditional schooling doesn't always fit every families' lifestyle or values, especially those that feel their child is being forced into a curriculum or school environment that supports or even understands their needs as a student. Sometimes parents may even feel that in-person schooling, or even the rigors and demands of homeschooling, don't fit their children's learning style, either. So some of them have turned to unschooling. So what exactly does it mean to unschool your child? And can it be accomplished responsibly? More importantly, can children actually derive an education that sets them up for success without a curriculum? Parents spoke to experts so you can determine if unschooling is right for you. Unschooling is defined by the Alliance for Self-Directed Education as an educational method focused on self-chosen activities and life experiences of the learner, rather than a structured school day. Children choose the topic that most interests them for the day. Some days, they may do a deep dive on biology, or another, painting or drawing. Other days, a child might elect not to learn anything at all in favor of playing outside. Children wake up, take breaks, and engage in educational activities whenever it suits them. Unschooling allows kids to learn when and how they want to, with as much parental oversight as guidance as the specific family using this technique deems necessary, instead of providing a schedule or structure. Julie Bogart, homeschooling advocate and author of The Brave Learner, says the method de-emphasizes the importance of curriculum. Unschooling 'is the belief that children learn best in the context of their own lives and experiences, and can learn anything through their natural curiosity and relationship with parents and other people,' she explains. Unschooling is accomplished at home, without testing or benchmarks, but with intensive parental involvement, says Curby Alexander, PhD, Professor of Professional Practice at Texas Christian University. 'A phrase you will hear unschooling parents and children use is: 'Life is learning, learning is life.' This means time is not divided into school, play, recreation, and work. Rather, learning is natural, incidental, meaningful, ubiquitous, and personal,' he says—meaning learning can happen incidentally throughout the regular course the day, and happening everywhere to kids all the time, whether they are at the grocery store with their parents or looking at the trees and flowers on family hike. The National Center for Education Statistics estimates that 3.4% of children K-12 were homeschooled in the 2022-2023 school year. Of that number, the School Library Journal reports between 10-20% are unschooled. While unschooling is a subset of homeschooling, it is also very different from the regimented, curriculum-based methodology of homeschooling. 'Homeschooling can be as linear and curriculum driven as traditional school. Unschooling in its purest form is education led by the child, supported by the parent, with no structure of evaluation or traditional school curriculum,' explains Bogart. Dr. Alexander agrees, noting that homeschooling typically has a set schedule—like a normal school day, children go to classes and have lunch break and recess. 'Unschooling, on the other hand, is typically unstructured, guided by the child's interests and preferences, and does not involve anything associated with schooling. No curriculum, no assignments or tests, no schedule,' he elaborates. With so much flexibility, parents may wonder: Would unschooling work for our family? We've rounded up both the upsides—and downsides—of this nontraditional education approach. One of the major benefits of unschooling is removing your child from the stressful environment and structure of the school building and all systems that go with it. All parents know how anxiety inducing it can be to get a bad grade on a test, and the kind of peer pressure kids go through during difficult classes and social situations. Unschooling takes the pressure off by dropping the grading system altogether—and it also motivates to engage with topics that inspire or excite them, rather than being incentivized to learn through the threat of a bad grade. 'Unschooling allows parents the freedom to go at the pace of their child's abilities and to tailor the environment of the home to the child's development and curiosity,' Bogart adds. Kids who don't experience the grade incentive inherent to traditional schooling may actually enjoy their education more because the pressure of attaining a perfect A is no longer hanging over their head; plus they get to dive as deep as they want into the subjects that really light up their brain, rather than being forced to veer off in another direction once a certain lesson plan has been completed. 'Parents of unschooled children have told me this removes the negative aspects of traditional schooling (e.g., bad grades, missed assignments, test anxiety, etc.) and makes the learning process much more enjoyable and personally rewarding,' says Dr. Alexander. Everyone knows how boring classes can be when they aren't tailored exactly to your talents or interests—but sometimes studying the same thing as everyone else, whether you're enjoying it or not, is just part of life, thanks to strict laws around curriculum at many public schools. Except that's not the case with unschooling. Unschooling allows kids to choose what they want to learn and when, so learning never feels like a chore. Kids are actually initiating the learning process on their own. 'Rather than following a curriculum designed by someone else, unschooled kids can take a deep dive into learning and follow their own interests,' Dr. Alexander explains. A child can study science as deeply as they want, but eventually they'll need math to get even further in that topic. As a matter of course, they'll double back to study math until their aptitude lines up with their study of science. The hope is, kids will learn even the most difficult subject matter as they dig into other areas of study. Bogart unschooled her four school-aged children for a year, and says that part of what she loved was how each child had a choice in what they wanted to learn. 'I loved what I learned from unschooling: the profound respect for learning because you want to, the opportunity to "go rogue" and learn what interests you rather than forcing yourself to learn because someone else tells you to, and the gift of supporting my kids rather than dragging them through textbooks and worksheets,' she says. Both children and parents enjoy the amount of quality time at home they have. Because unschooling is a kind of homeschooling, children are at home more often than those in traditional schooling. 'Parents also get to participate in a way that facilitates a child's passions, interests, and aptitudes,' says Bogart. Unschooling can teach parents so much about their children—the kinds of things they care about and prioritize, especially in learning. Then, they can have fun learning together. 'I have heard parents tell me they enjoy all the time they get to spend with their kids. Since their kids are not required to follow a set schedule, they can prepare and eat meals together, do fun activities during the day, and help with chores around the house,' says Dr. Alexander. Unschooling can be a difficult balancing act. On the one hand, parents don't want to stifle their child's natural unfolding of their child's learning style, but on the other, they don't want to end up enforcing the rigid curriculum they set out to abandon in the first place—and they definitely don't want to set up a system where kids feel like all household rules have disappeared and its okay to ride their bike outside all day without once picking up a book. 'One of the biggest challenges I see is that sometimes parents are afraid to guide their children's learning (fearing they will be disqualified from being seen as unschoolers),' Bogart says. Children can become 'nomadic' in the home as they search for stimulation, she explains, and parents can panic and back off so they don't infringe upon their child's learning development. That's why its important for parents to make it clear that unschooling gives their kids more autonomy over their educations, but it doesn't that the parents are no longer in control of their upbringing—even if means reigning them when they become unfocused or disinterested in learning. Potentially the largest risk of unschooling is falling into a trap of educational negligence. Because children choose their own schedule and topics, parents might get the impression that their learning is no longer a shared responsibility, Bogart says. 'The biggest drawback to unschooling is the idle, uninvolved parent—that's the parent who neglects the child and doesn't participate in supporting their child's growth and development through intentional interactions and deliberately strewing [this is the practice of casually placing educational tools or activities in a child's environment to encourage self-directed learning] materials and opportunities,' she continues. But parents of unschoolers need to continue to be involved, modeling interest in learning and the stamina to follow through with support when children come up against new skill sets that might need extra help mastering—there are also opportunities for parents and students to collaborate on science and art projects, games, and other activities that would benefit from teamwork. At the end of her first unschooling year, Bogart took a step back from her kids to assess their progress. Two of her children loved unschooling, but two were very uncomfortable; the freedom felt less like fun and more like abandonment. 'I also learned that for some kids, that level of "freedom" [in unschooling] felt a bit like neglect. We of course corrected the next year and I was able to give them what they needed and wanted—guidance and accountability,' she explains. Dr. Alexander says that when he leads his class on unschooling, the most lively discussion of the year breaks out among future educators: Can children really be given the responsibility of their own learning, when basic skills like reading and early math are so important—but also so challenging to pick up? 'Because my students were all future educators, they had strong opinions about children only learning what interests them. They would argue that there is a lot of knowledge and skills a child needs to know in order to function in society, including basic reading, writing, and math proficiency and social skills,' he says. The structure of traditional schooling allows kids to hit all those educational milestones through a set schedule of classes—Bogart agrees that a challenge aspect of unschooling is that level of structure exist in this education model. 'Another possible negative consequence of unschooling is that sometimes in an attempt to support a child's interests, the fundamental skills are not practiced enough,' she explains. Unschooled children who need to pick up difficult-to-learn skills need to be taught stamina and commitment by their parents, rather than focusing on their happiness or satisfaction in the short term. That means encouraging them to return challenging subjects, even if they weren't their favorite, in order to reinforce the subject matter lest the skills they accumulated be lost while they are putting too much focus on another subject they enjoy more. Teenagers sleep in, little kids go to bed early and take long naps. Children of all ages can find sitting still and reading for long periods of time a serious challenge. And all kids want to play computer games. And they don't always have the discipline to dedicate themselves to necessary tasks that don't seem to matter in the moment (like practicing their vocabulary and literary skills over and over)—even though learning them now might have serious consequences later. But because unschooling doesn't typically feature a set schedule, there isn't necessarily guarantee that your kid is going to carve out the time to revisit certain lessons or skills. And then the flexibility that initially seemed like a positive can swiftly become a hindrance. Dr. Alexander's students 'would question whether or not the child was being set up for success in a society that clearly has expectations around punctuality, schedules, policies, and yes, doing things you don't want to do (paying taxes and buying car insurance come to mind).' When you're a kid, not following a set schedule seems like a boon—but making the bus or getting to class on time have real-world consequences. They teach children how to manage their time effectively, setting them up for future the end, your child's educational path needs to fit their learning style, and your family's lifestyle, and unschooling has become one way for parents to cope with that reality. Unschooling can work for families who desire flexibility and freedom from a traditional schooling structure, all while allowing kids to explore topics like science and literacy at their own pace—without the stress of set class times and grades. And while unschooling may come with certain challenges, it can be a gratifying, freeing experience that allows children to take the reins in their own education—but it is imperative for parents to stay engaged and interested in their child's education if it's going to the original article on Parents
