What CVS Health Corporation told the SEC could break it.

Health Care Benefits revenues from the federal government were ~20% of CVS's consolidated total revenues in 2025 (and 2024/2023), and CMS contracts for Medicare-eligible individuals accounted for ~79% of the company's federal-government revenues — a heavy dependence on CMS/Medicare programs whose terms, bidding and funding it does not control.

“Contracts with CMS for coverage of Medicare-eligible individuals in the Health Care Benefits segment accounted for approximately 79%, 74% and 73%, respectively, of the Company's consolidated revenues from the federal government in 2025, 2024 and 2023.”

CVS's regulated insurance subsidiaries must maintain minimum statutory surplus (~$11.7B required by regulators at year-end 2025) and face restrictions on dividends/distributions to equity holders; Aetna-acquisition undertakings require prior regulatory approval of certain HMO/insurer dividends, limiting upstream cash (max ~$3.8B permitted without approval in 2026).

“Estimated minimum statutory surplus required by regulators $ 11,710 ... Estimated maximum dividend distributions permitted in 2026 without prior regulatory approval $ 3,788”

The Inflation Reduction Act's impact on the Medicare Part D program drove much of CVS's 2025 Government-business revenue growth and reshapes benefit design/drug pricing, while the Pharmacy & Consumer Wellness segment faces continued pharmacy reimbursement pressure and generic-introduction headwinds.

“Total revenues increased $12.7 billion, or 9.7%, in 2025 compared to 2024 primarily driven by increases in the Government business, largely due to the impact of the Inflation Reduction Act (“IRA”) on the Medicare Part D program.”

While competitive sources are readily available for most retail products, many products distributed by CVS's pharmacies are made with shortage-susceptible ingredients and in some cases CVS depends on a single source of supply; much of the branded/generic drug product it sells is manufactured wholly or substantially outside the U.S., exposing it to supply shortages and trade disruption.

“many products distributed by our pharmacies are manufactured with ingredients that are susceptible to supply shortages. In some cases, we depend upon a single source of supply. Any such supply shortages or loss of any such single source of supply could adversely affect our operating results and cash flows.”