By Anna Wilde Mathews

CVS Health's chief executive is feeling optimistic about working with the Trump administration.

On Wednesday, CVS CEO David Joyner said in an interview that he believes there is strong backing for private Medicare plans, as well as the goal of bringing down drug costs.

"In my conversations, I have received favorable support of Medicare Advantage and the importance of actually having the public and private sector work together to help lower cost and improve the product," he said.

The federal government can have a huge impact on CVS and its competitors: Much of the health-insurance business involves federal programs, including Medicare. Still, Wall Street has long viewed Republicans as more friendly to private Medicare plans, though likely to squeeze Medicaid and the individual marketplace.

Investors are also concerned about the ongoing challenges to pharmacy-benefit managers from both parties, as well as the wild-card role of Elon Musk's cost-cutting Department of Government Efficiency.

Joyner said he believes the administration sees a Medicare Advantage program that's working. "I think their preference is not to see benefits being taken away and/or creating disruption," while also managing costs, he said.

Joyner added that President Trump has said he is focused on bringing down drug costs, and that PBMs focus on the same goal.

"We believe the administration, and even those in Congress, are beginning to focus on the real problem, which is, 'Who is responsible for the high cost of drugs in this country?'"

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

February 12, 2025 18:06 ET (23:06 GMT)

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