CVS Health has lowered its earnings guidance for a third time this year, now expecting adjusted earnings per share of $6.40 to $6.65, down from previous forecasts of at least $7, largely due to rising medical costs affecting its Aetna insurance segment. CEO Karen Lynch will take over the leadership of Aetna, replacing Brian Kane, who is departing after poor performance in the division, which has seen a 39% drop in operating income, attributed to increased claim utilization and declining Medicare Advantage ratings. CVS has also announced a $2 billion cost-cutting initiative and plans to enhance use of artificial intelligence and automation to improve efficiency. The company's total revenues rose 2.6% to $91.2 billion, but net income fell nearly 9% to $1.77 billion. Analysts indicate that the challenges faced by Aetna are reflective of broader issues in the Medicare Advantage market, where insurers are struggling with high costs and competitive pressures. Despite these issues, Aetna's membership grew by 200,000 in the second quarter, suggesting some resilience amid the difficulties.