Healthcare stocks took a hit on Wednesday as lawmakers and patients pushed for changes to the business models of major health-care companies. Shares of UnitedHealth Group, Cigna, and CVS Health fell nearly 5% due to concerns over a new bipartisan bill aimed at breaking up pharmacy benefit managers (PBMs).
The companies, which operate three of the nation’s largest private health insurers and own pharmacies, are facing increased scrutiny from lawmakers and patients. A Senate bill sponsored by Sens. Elizabeth Warren and Josh Hawley would force companies that own both PBMs and pharmacies to divest their pharmacy businesses within three years.
Critics argue that PBMs have manipulated the market to boost profits at the expense of patients and independent pharmacies. The largest PBMs are owned or connected to health insurers, administering about 80% of the nation’s prescriptions.
The bill is part of a broader effort to address concerns over high drug costs and conflicts of interest in the healthcare industry. As investors feared pressure from lawmakers and patients could force changes to their business models, shares of UnitedHealth Group, Cigna, and CVS Health closed at least 5% lower.
Source: https://www.cnbc.com/2024/12/11/health-care-stocks-fall-after-warren-pbm-bill-brian-thompson-shooting.html