Bipartisan Bill Aims to Break Up PBMs, Impacting CVS, UnitedHealth

Dec 11, 2024, 07:16 PM

A bipartisan bill, sponsored by Senators Elizabeth Warren and Josh Hawley, aims to break up the dominance of pharmacy benefit managers (PBMs) by requiring them to divest their pharmacy operations within three years. The legislation targets PBMs like CVS Caremark and OptumRx, which control drug pricing and pharmacy networks, impacting health care stocks as investors react to potential changes in business models. Shares of companies like UnitedHealth and CVS have tumbled amid concerns over the bill's implications.