Aug 7 (Reuters) - CVS Health Corp ( CVS ) on Wednesday

cut its 2024 profit forecast, hit by increased medical costs at

its health insurance unit as demand for healthcare services

remained elevated.

The healthcare conglomerate also announced a multi-year plan

to save $2 billion in costs after recording a sharp decline in

its second-quarter profit.

The company's Aetna insurance unit, along with peers, has

been struggling with high costs from increased use of medical

services by members of Medicare Advantage plans for adults aged

65 and older or for those with disabilities.

CVS said Brian Kane, chief of the health care benefits unit

that runs Aetna, is leaving the company effective immediately.

Karen Lynch, who was president of Aetna before becoming CVS's

CEO, will assume direct leadership of the unit, the company

said.

Lynch and CFO Tom Cowhey will oversee day-to-day management

of this business, while Aetna veteran and Chief Strategy Officer

Katerina Guerraz has been made chief operating officer of the

unit.

CVS' adjusted profit dropped to $1.83 per share in the

quarter ended June 30, from $2.21 last year, but was still ahead

of LSEG estimates by 10 cents. The estimates have come down

sharply in the past month.

The company's healthcare benefit ratio - the percentage of

premiums spent on medical care - also rose more than 3

percentage points to 89.6%, but was still lower than estimates

of 90.5%.

Aetna also offers Medicaid plans for lower income people,

where costs have also been high due to sicker patients gaining

coverage.

CVS cut its annual profit forecast to a range of $6.40 to

$6.65 from at least $7.00 earlier, marking at least its fourth

cut of the outlook.

The company recorded total quarterly revenue of $91.2

billion, missing analysts' estimates of $91.5 billion.