CVS could break itself up. Why, and what does that mean for you?

Blame the pickleball paddles.

Over the past year, CVS has made a concerted push to court seniors to enroll in its Aetna Medicare programs by offering free sports equipment, fishing rods, and other enticements. It worked maybe a little too well for CVS, as the surge in new customers backfired when the medical costs for those sporty seniors spiraled well beyond the company’s expectations.

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It was an example of how the big idea behind the unprecedented merger of a retail pharmacy chain with a health insurance company did not quite pan out as expected. Now, after the Woonsocket, R.I.-based health care giant had to again reduce its profit outlook and with its stock taking a pummeling on Wall Street, CVS is reportedly considering breaking itself into two smaller companies to keep its critics at bay.

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