Shares of corporations proudly owning pharmacy profit managers fell on Wednesday after the introduction of a bipartisan invoice that may pressure well being insurers or drug middlemen to divest their pharmacy companies.
CVS Well being’s Caremark, Cigna’s Specific Scripts and UnitedHealth Group’s Optum management nearly all of pharmacy profit administration (PBMs) within the US, whereas their dad or mum corporations additionally function medical insurance companies.
Shares of all three corporations have been down between 4.8% to five.5% after the Wall Avenue Journal first reported information of the invoice.
The invoice, sponsored by Sens. Elizabeth Warren, a Democrat, and Josh Hawley, a Republican, will pressure corporations proudly owning well being insurers or pharmacy profit managers to divest their companies working pharmacies inside three years.
Representatives Diana Harshbarger, a Republican, and Jake Auchincloss, a Democrat, are additionally supporting the invoice, which will probably be launched within the Congress.
PBMs negotiate prescription drug costs between insurers, pharmacies and drugmakers, and straight reimburse pharmacies for prescribed drugs included beneath their agreed phrases.
They’ve beforehand come beneath scrutiny for his or her affect over prescription drug costs.
“PBMs have manipulated the market to enrich themselves — hiking up drug costs, cheating employers, and driving small pharmacies out of business. My new bipartisan bill will untangle these conflicts of interest by reining in these middlemen,” mentioned Senator Warren.
Shares of different insurers reminiscent of Elevance, Humana and Centene fell between 1% and three%.
“The latest introduction of potential legislation to restrict PBM operations and broader healthcare vertical integration is unlikely to gain traction, although it is hard to dismiss outright,” mentioned Leerink Companions analyst Michael Cherny.
Shares of insurers have come beneath strain after Brian Thompson, the CEO of UnitedHealth’s medical insurance unit, was fatally shot outdoors a Manhattan lodge final week.
