A new bipartisan bill sponsored by Sen. Josh Hawley (R-MO) and Sen. Elizabeth Warren (D-MA) aims to force healthcare conglomerates to divest their pharmacy divisions. The legislation, targeting companies like CVS Health, UnitedHealth, and Cigna, seeks to reduce costs and increase competition in the prescription drug market.
The bill would require these companies to sell their pharmacy businesses within three years, addressing concerns that their current market dominance raises drug prices. CVS, for example, owns a major PBM, a retail pharmacy chain, and a health insurer, consolidating power in a way lawmakers say disadvantages patients.
“PBMs have exploited the system to line their own pockets,” Warren said. Hawley echoed the sentiment, stating, “These companies must be broken up to start putting patients before profits.”
PBMs, which manage drug benefits for insurers and employers, control 80% of the prescription market through three major players: CVS Caremark, Cigna’s Express Scripts, and UnitedHealth’s Optum Rx. Critics argue these entities steer patients toward their own pharmacies, reducing competition and driving up costs.
The Pharmaceutical Care Management Association defended PBMs, claiming they ensure affordable access to medications. A CVS spokesperson warned that breaking up healthcare companies could lead to higher drug prices while benefiting pharmaceutical firms.
If passed, this legislation would represent one of the most aggressive efforts to reform the healthcare industry in decades. With bipartisan backing, the bill reflects growing concerns over the consolidation of power in the prescription drug market and its impact on patients.
