CVS Health Appoints Ed DeVaney as President of Caremark PBM

CVS Health has named Ed DeVaney as the new president of its pharmacy benefit manager (PBM), CVS Caremark. The appointment comes after DeVaney served as interim president since December 2024, filling the vacancy left when David Joyner ascended to the role of CEO of CVS Health in October.

Leadership Transition and Industry Challenges

DeVaney's appointment is part of a series of leadership changes at CVS Health as the company navigates challenges in its insurance segment and increased scrutiny of PBMs. Prior to his interim role, DeVaney led sales and account management as president of employer and health plans at Caremark. He joined CVS in 2005 after working at human resources consultancy Hewitt Associates.

The leadership shuffle at CVS Health includes the appointment of Steve Nelson, formerly CEO of ChenMed, to lead CVS's insurer Aetna in November. These changes come as the company grapples with increased medical costs in its insurance business, which saw profits nearly halved last year.

PBM Industry Under Scrutiny

The PBM business faces mounting challenges as lawmakers and federal regulators intensify their scrutiny of drug middlemen. In a significant development last year, the Federal Trade Commission sued the nation's three largest PBMs, including Caremark, alleging they steered patients toward more expensive insulin medications to secure larger rebates from pharmaceutical companies.

David Joyner, CVS Health CEO, defended the role of PBMs on a recent earnings call, stating, "Our work is a critical counterbalance to the monopolistic tendencies of drug manufacturers. This is why PBMs are needed and why manufacturers fight so hard to limit our capabilities."

DeVaney's Vision for Caremark

In his new role, DeVaney will report to Group President Prem Shah. Commenting on his appointment, DeVaney said, "I am honored to take on this role and to work with our dedicated colleagues who are focused on making prescription drugs more affordable and delivering better care to everyone we are privileged to serve. The role of PBMs has never been more critical in achieving affordability and access to medicine in our country, and our drive to greater drug pricing transparency through innovation has never been more needed."

As Caremark's new president, DeVaney faces the task of navigating the complex landscape of drug pricing and healthcare costs while addressing increasing regulatory scrutiny and maintaining the company's competitive edge in the PBM market.