Bipartisan Bill Seeks to Break Up Pharmacy Benefit Managers and Health Insurer Monopolies

Legislation introduced by Senators Warren and Hawley would force major health care companies to divest their pharmacy businesses within three years.

The proposed legislation targets pharmacy benefit managers (PBMs), requiring companies like CVS, Cigna, and UnitedHealth to separate their pharmacy operations from their insurance and PBM units.
Lawmakers argue that PBMs create conflicts of interest, drive up drug costs, and harm independent pharmacies, while industry groups claim they help control costs and improve access.
The bill, co-sponsored by Senators Elizabeth Warren and Josh Hawley, has bipartisan support and a companion bill has been introduced in the House of Representatives.
Shares of major health care companies, including CVS Health, Cigna, and UnitedHealth, fell significantly following the announcement of the legislation.
The legislation is seen as the most aggressive effort to regulate PBMs and address concerns about monopolistic practices in the healthcare sector, though passage is unlikely this year.