By In the wake of President-elect Donald Trump’s recent declaration to eliminate the “middle man” in an effort to reduce prescription drug costs, shares of companies that own pharmacy benefit managers (PBMs) experienced a downturn on Monday. Key industry players such as CVS Health (NYSE:CVS)’s Caremark, Cigna (NYSE:CI)’s Express Scripts, and UnitedHealth Group (NYSE:UNH)’s Optum, which collectively dominate the PBM market in the United States, saw their stock prices fall after Trump’s remarks to the press at Mar-a-Lago today.
The statement from Trump aligns with bipartisan efforts to address the role of PBMs in the healthcare industry. Last week, a bill was introduced by U.S. Senators Elizabeth Warren and Josh Hawley, representing both the Democratic and Republican parties, respectively. The proposed legislation aims to compel health insurers or drug middlemen to separate from their pharmacy operations within a three-year period. This bill, which also has the backing of Representatives Diana Harshbarger and Jake Auchincloss from the Republican and Democratic parties, is set to be presented in Congress.
PBMs have become a focal point of scrutiny as they play a crucial role in negotiating drug prices between various parties including insurers, pharmacies, and drug manufacturers. They are also responsible for reimbursing pharmacies for prescription drugs covered under their plans.
The market’s reaction to Trump’s remarks was evident as CVS’s stock declined by 3%, Cigna’s by 1.2%, and UnitedHealth’s by 2.8% on Monday afternoon. These movements underscore the growing political and regulatory pressures facing PBMs as legislators from both major parties push for reforms in the pharmaceutical industry.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.