Trump Targets Drug Industry Middlemen, Sending CVS, UnitedHealth, and Cigna Shares Lower

President-elect Donald Trump vows to eliminate pharmacy benefit managers, accusing them of inflating drug prices and profiting excessively.

President-elect Donald Trump has announced plans to eliminate pharmacy benefit managers (PBMs), which he accuses of driving up drug prices and profiting disproportionately from the healthcare system.
Shares of major healthcare companies CVS Health, UnitedHealth Group, and Cigna Group dropped significantly following Trump's remarks, reflecting investor concerns over potential regulatory changes.
PBMs, including CVS Caremark, Express Scripts, and OptumRx, play a central role in negotiating drug prices but face criticism for a lack of transparency and alleged practices that increase costs for patients.
Bipartisan support for reform is growing, with Senators Elizabeth Warren and Josh Hawley introducing legislation to require health insurers to divest their PBM operations within three years.
Trump's comments highlight a broader push to reduce U.S. drug prices, which remain significantly higher than in other countries, with further policy changes expected after his inauguration.