Feb 21 (Reuters) - CVS Health ( CVS ) said on Friday it

has cut bonuses for some employees because of its low profit

levels last year, as the healthcare conglomerate grapples with

higher costs across its Medicare plans.

"We did not meet our financial goals in 2024, and that's

reflected in our corporate bonus," a company representative told

Reuters in a statement.

The conglomerate has faced a more pronounced impact from

rising costs as it enrolled the highest number of new members

under the Medicare plans for people aged 65 and older, or who

are disabled.

Its healthcare business has been hurt by increased use of

medical services, a change in quality ratings and bonus payments

for its Medicare Advantage plans and a rise in sicker members

enrolled in its Medicaid plans for lower-income people.

In October, CVS replaced CEO Karen Lynch with company

veteran David Joyner, after it faced pressure from investors,

including activist Glenview Capital, to improve its stagnant

share price.

The company had also laid out cost-cutting plans and named a

new insurance head in November as part of Joyner's efforts to

turn around the company.

Earlier this month, CVS beat Wall Street estimate for

fourth-quarter profit and provided an annual forecast that

largely met expectations, hinting at an improvement in

performance in its first full quarter under the new CEO.