Official press releases and corporate announcements from CVS Health

Senators Warren and Hawley Lead Bipartisan Bill to Force PBMs to Divest Pharmacies in 3 Years

Dec 11, 2024, 05:00 PM

A bipartisan group of U.S. lawmakers, led by Senators Elizabeth Warren and Josh Hawley, has introduced legislation aimed at addressing conflicts of interest within the pharmaceutical industry. The proposed bill, known as the Patients Before Monopolies (PBM) Act, would require pharmacy benefit managers (PBMs) and health insurers to divest their ownership of pharmacies within three years. This move is intended to curb the influence of PBMs, which have been accused of manipulating the market, inflating drug prices, and driving small pharmacies out of business. The legislation has garnered support in both the Senate and the House, with Representatives Diana Harshbarger and Jake Auchincloss introducing a companion bill in the House. The bill seeks to establish a firewall within the prescription-drug supply chain, separating those who research, manufacture, prescribe, and dispense drugs from those who manage benefits and insurance. The initiative has led to a decline in health care stocks as investors react to potential changes in business models, particularly affecting companies like CVS Caremark and OptumRx.