CVS

Baba, an applied AI company modernizing Medicare and Medicaid care, announced a $40 million Series A funding round led by FirstMark Capital with participation from CVS Health Ventures and Valtrius. The funding will support expansion of clinical care teams, AI research advancement, and health plan partnerships. Baba provides dedicated care coordination combining licensed clinicians, care coordinators, and AI to help patients navigate complex healthcare needs, currently serving over 10,000 patients with 100,000 families on waitlist.

CVS Health and Alignment Healthcare are competing in the fast-growing Medicare Advantage market, projected to expand at 10.1% CAGR through 2034. CVS is successfully turning around Aetna with over $2 billion in adjusted operating income gains in H1 2026, while Alignment Healthcare grew membership 31.5% but faces headwinds from higher medical needs among new members. CVS trades at a lower forward P/E (10.41 vs 25.43) with positive earnings revisions, while Alignment faces downward estimate revisions and a 50.8% stock decline over the past year.