Item 1A. Risk Factors.

Other than the risk factor listed below, there have been no material changes to the risk factors disclosed in our 2024 Annual Report on Form 10-K.

The imposition of tariffs by the U.S. government and any retaliatory tariffs imposed in response could have a material adverse effect on our results of operations, financial condition and cash flows.

The imposition of tariffs by the U.S. government and any retaliatory tariffs imposed in response is uncertain, including in the amount, applicability and duration of such tariffs. Such tariffs could increase the costs of healthcare, including pharmaceutical drugs, medical devices and other healthcare supplies and equipment. Given the uncertain nature of the impact of tariffs on our costs, we may not be able to accurately predict the effect of these increases in medical expenses. Our revenue from government-sponsored health programs are most often priced annually, which may limit our ability to adjust for any tariff-related impacts timely. Any significant variation from our expectations regarding healthcare costs, including due to tariffs or other assumptions utilized in setting adequate premium rates, could have a material adverse effect on our results of operations, financial condition and cash flows.

Furthermore, disruptions in the supply of products for any of our specialty pharmacies due to tariffs could affect our ability to process and dispense prescriptions in a timely manner, which could materially and adversely affect our results of operations, financial condition and cash flows.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

In November 2005, the Company's Board of Directors announced a stock repurchase program, which was most recently increased in December 2023. The Company is authorized to repurchase up to $10.0 billion, inclusive of past authorizations, of which $2.2 billion remains as of March 31, 2025.

The stock repurchase program is effected primarily through regular open-market purchases (which may include repurchase plans designed to comply with Rule 10b5-1 and accelerated share repurchases), the amounts and timing of which are subject to the Company's discretion as part of its capital allocation strategy, and may be based upon general market conditions and the prevailing price and trading volumes of its common stock. No duration has been placed on the repurchase program. The Company reserves the right to discontinue the repurchase program at any time.