CVS Health reports third quarter results with diversified assets delivering strong enterprise performance
Five years ago, we made the bold decision to eliminate tobacco products from all of our CVS Pharmacy stores nationwide, and we’re still the only national pharmacy to do so.
Not only did our decision lead to 100 million fewer packs of cigarettes being sold in the first year since their removal, but we also took our efforts beyond our stores, helping 228 colleges and universities become tobacco free over the past five years and committing $50 million to deliver the first tobacco-free generation through our Be The First initiative.
And with the significant rise in teen e-cigarette use, we’re now working to combat vaping, too, including a $10 million commitment in 2019 to support youth smoking and e-cigarette prevention strategies and education in partnership with Discovery Education and CATCH Global Foundation, and our pledge earlier this year not to work with advertising or public relations agencies who work with tobacco and e-cigarette companies.
Beyond tobacco: Taking steps to transform health care
But our decision to eliminate tobacco was just the start. As a health care company now combined with Aetna, we’re taking even bolder steps to transform the consumer health care experience and help lead our customers, patients and the communities we serve on a path to better health.
On our shelves, customers now have access to more health-focused products and services than ever before. And we recently became the first and only national retailer to require that all vitamins and supplements undergo third-party testing to confirm they meet our high standards.
We’re also removing chemicals like parabens and phthalates from our store brand products and we took SPF less than 15 off our shelves.
At the local level, we’re building healthier communities with a $100 million investment in health and wellness, which includes programs aimed at helping people manage the most prevalent chronic diseases such as diabetes, heart disease and cancer.
Moving into 2020, we will expand our focus on tobacco cessation and prevention, particularly within the Medicaid program where smoking rates are considerably higher than among all adults. We’ll be working with Aetna Better Health managed Medicaid plans and together with CVS Caremark clients interested in creating or expanding smoking cession efforts for their Medicaid members.
At CVS Health, we know that health is a personal journey. And from tobacco removal to our many other health-focused services and offerings, we’re committed to navigating that journey hand-in-hand with our customers and patients to ensure that the future of care is one in which everyone can achieve their best health.
With our presence in local communities and our commitment to healthcare transformation, CVS Health is uniquely positioned to respond to this pandemic.
Our response to this major public health challenge has been swift, responsive, and multidimensional, as our nearly 300,000 colleagues from across the business have joined forces to make a meaningful impact on the critical needs this pandemic has created.
This report details how every business unit across our enterprise is rising to the challenge to support our customers, colleagues, communities and patients through some of their most difficult times, including ways that we’re working to keep our employees safe, the critical testing capabilities we’ve brought to sites nationwide, and the work we’re doing to help communities most impacted by the pandemic.
Our COVID-19 community support
As we work with our community partners to address the COVID-19 pandemic, our purpose of helping people on their path to better health is more important than ever. With many individuals and communities in need, we are focused on finding meaningful ways to strengthen the communities we serve.
Our COVID-19 responseOur COVID-19 response
With our presence in local communities and our commitment to healthcare transformation, we are uniquely positioned to respond to this pandemic. Our response to this major public health challenge has been swift, responsive, and multidimensional, as our nearly 300,000 colleagues from across the business have joined forces to make a meaningful impact on the critical needs this pandemic has created.
Here’s a look into how we’re supporting our local communities
Supporting relief efforts in our local communities
There are many individuals and communities in need and we are finding meaningful ways to support our employees, patients, customers and partners nationally and in the communities we serve.Read more
Transform Health 2030
At the beginning of this new decade, we are reinforcing our commitment through Transform Health 2030, our new corporate social responsibility (CSR) strategy focused on improving the health of the people and communities we serve, and to support the health of our business and the planet.Read our 2019 CSR report
Political activities & contributions
CVS Health participates in the political process to help shape public policy and address legislation that has a direct impact on the company. The engagement ensures that the interests of our business, customers, shareholders and employees are fairly represented at all levels of government.
It is CVS Health’s policy that the CEO and the Board are responsible for determining the company’s policy and political interests, and how to further those interests in a manner consistent with applicable laws. Specifically, the Nominating and Corporate Governance Committee regularly reviews and considers the Company’s policies and practices, including expenditures, regarding political contributions, and direct and indirect lobbying. It also reviews and considers the company’s policies and practices regarding other significant public policy issues, which the Board may determine from time to time.
Lobbying is highly regulated in the United States, and we comply with applicable U.S. federal and state laws, including the Lobbying Disclosure Act and Honest Leadership and Open Government Act that require reporting on lobbying activities and certification of compliance with Congressional gift rules. Our company’s federal lobbying reports can be found on the lobbying disclosures website. You can directly access our consolidated lobbying reports.
Our Government Affairs team represents the company’s point of view in Washington, D.C., and in state capitals around the country. We focus on legislative and public policy issues that impact the company’s delivery of pharmacy care and long-term business interests, and communicate with policymakers and stakeholders on issues that impact our business.
As a public corporation, CVS Health is prohibited by federal law from making contributions to candidates or political parties in federal elections. We make contributions at the state level, as allowed by state laws. All of the company’s contributions promote the interests of the company and are made without regard for the private political preferences of company officers and executives. A listing of our political donations at the state and local level, including candidates, political parties and ballot initiatives, is available in our political activities and contributions report.
Colleague political action
As with many corporations, CVS Health offers certain eligible colleagues an opportunity to participate in the political process by voluntarily contributing to the CVS Health Political Action Committee (PAC), our company’s federal PAC. Political contributions to federal, state, and local candidates, political party committees, and political action committees are made by our PAC in accordance with applicable law. Consistent with federal law, CVS Health pays the administrative, solicitation and compliance costs of the Committee.
The CVS Health PAC is subject to comprehensive regulation by the federal government, including detailed disclosure requirements.
Under the Lobbying Disclosure Act of 1995, CVS Health submits to Congress semi-annual reports, which also include a listing of EPAC’s contributions to federal candidates. In a move toward greater transparency and per shareholder requests, we report these contributions in the Political Activities and Contributions report on our website. Included on our website are disclosures of the contributions the PAC makes at the state level in accordance with individual state laws. Additionally, we operate employee-funded state Political Action Committees in Rhode Island and Massachusetts.
CVS Health has a policy governing political contributions made from corporate and PAC funds to ensure that all potential political contributions made by or on behalf of CVS Health or an PAC are reviewed and approved internally for compliance with all federal, state, and local laws, and that all of the company’s political activities are conducted in accordance with high ethical standards. This policy applies to all employees of CVS Health, and each of its subsidiaries and affiliates. CVS Health does not make any independent expenditures in federal, state or local elections.
Trade association participation
CVS Health participates in various federal and state trade associations or organizations that operate in support of specific industries. Trade associations participate in activities such as education, advertising and lobbying to influence public policy. Many associations offer other services, such as producing conferences, networking or charitable events or offering classes or educational materials. Some associations also make political contributions or operate a PAC.
From January 2017 – March 2018, CVS Health paid approximately $7.5 million in dues to trade and industry associations. (This amount includes payments to governors associations and certain non-profit civic organizations.) Details regarding CVS Health’s trade and industry association membership dues can be found in our annual trade association dues report, along with our past reports. These reports include the amount paid for advocacy and/or political purposes for any trade or industry association with annual total dues of $25,000 or more, as well as payments in excess of $25,000 to such associations and governmental organizations.
Corporate social responsibility: Resource library
On this page you will find our policies, statements and other important reference documents that inform and contribute to our corporate social responsibility strategy and commitments.
To view financial documents, including our Proxy Statement and Form 10-K, visit our Investors page.
Corporate social responsibility: Report archive
Our current and previous Corporate Social Responsibility Reports. To learn more about our most recent report, visit the Report page.
2019 CSR Report
2018 CSR Report
2017 CSR Report
2016 CSR Report
2015 CSR Report
2014 CSR Report
2013 CSR Report
2012 CSR Report
2011 CSR Report
2010 CSR Report
2009 CSR Report
2008 CSR Report
2007 CSR Report
Corporate social responsibility reports
At the beginning of this new decade, we are reinforcing our commitment to helping people on their path to better health through Transform Health 2030. Grounded in four pillars — Healthy People, Healthy Business, Healthy Community and Healthy Planet — Transform Health 2030 is inclusive of our enterprise strategy and the impact we know we can have as a health care leader.
Download this year’s report
Explore our report
Our goal is to be the front door to health care and CVS Health remains focused on helping people on their path to better health by making health care more local and simpler. In 2020 and beyond, we welcome the opportunity to collaborate with our partners, stockholders and other stakeholders to deliver better health to our customers, patients, colleagues and the communities we serve.
In 2019, we conducted a comprehensive materiality assessment, in accordance with the Global Reporting Initiative (GRI) Standards, to reflect our growing business, strategy and stakeholder expectations. The assessment evaluated the 23 topics from our materiality assessment in 2017. Additionally, it reflected our Aetna integration activities through internal and external stakeholder feedback, competitive benchmarking, an industry landscape and assessment of emerging issues. Ultimately, the 2019 materiality assessment drove the development of our Transform Health 2030 strategy and its pillars: Healthy People, Healthy Community, Healthy Business and Healthy Planet.
CVS Caremark received Health Information Products (HIP) Certification from the National Committee on Quality Assurance (NCQA), for providing comprehensive pharmacy benefits information to its members. The certification was implemented on July 15, 2020, and will go through July 15, 2022. This marks the second consecutive two-year HIP Certification from the NCQA.
This helps affirm that CVS Caremark, through our Caremark website and customer call center, provides members with the information they need to understand and optimize their pharmacy benefits. NCQA's HIP Certification is a quality assessment program that health plans can use to help evaluate health care organizations that develop and provide content, tools and services to plan members.
This certification further underscores our ability to provide accessible and accurate pharmacy benefit information to the members we serve on behalf of our clients.
“Earning NCQA’s HIP Certification demonstrates that an organization has expertise in gathering and disseminating health care information for members,” said Lisa Slattery, Vice President, Accreditation and Recognition Operations, NCQA.”
CVS Caremark provides pharmacy benefit information to members by mail, digitally and telephonically. This can include information about a member's prescriptions, drug coverage and plan design, such as in-network pharmacy locations and mail-order options.
HIP Certification is a voluntary review process in which NCQA evaluated CVS Caremark’s management of various aspects of its data collection and systems operation, and the process the company uses to continuously improve the services it provides. The HIP review includes rigorous evaluations conducted by a team of health care professionals. A national oversight committee of physicians analyzes the team's findings and determine certification based on the HIP organization's compliance with NCQA standards.
NCQA is a private, nonprofit organization dedicated to improving health care quality. NCQA accredits and certifies a wide range of health care organizations. It also recognizes clinicians and practices in key areas of performance. NCQA’s Healthcare Effectiveness Data and Information Set (HEDIS®) is the most widely used performance measurement tool in health care. NCQA’s website contains information to help consumers, employers and others make more informed health care choices.