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Sections a UnitedHealth Group (NYSE: UNH) was hitting back today at reports that the Senate is working on a bill that would force health insurers like UnitedHealth to abandon their pharmacy benefit managers (PBMs) within three years.
As a result, the stock was trading down 5% at 11:44 am ET. Other health insurance stocksincluding Cigna and CVS Healththey also did not mention the story.
Bill, which was said by The Wall Street Journalhe seems to have bipartisan support, as he was supported by Democrat Elizabeth Warren and Republican Josh Hawley. The bill aims to free up a large source of health care, since the pharmacy benefit managers are companies that work like drug dealers, who use prescription drug programs on behalf of insurance companies. There have been previous attempts to limit their influence.
UnitedHealth, the nation’s largest health insurance company, owns one of the largest PBMs, Optum Rx, which in 2023 achieved $159 billion in drug spending and $63 billion in specialty drug spending.
UnitedHealth, one of the nation’s most important companies with a market cap of $500 billion, has grown physically and through acquisitions and is now a growing business that touches almost every area of healthcare.
It’s unclear what will come of the new Senate bill, but bipartisan support appears to be a promising sign.
UnitedHealth’s actions have come under scrutiny since the killing of the company’s chief executive last week. After his death, social media was not filled with sadness but with angry words towards UNH and other insurance companies. Congressman Dean Philips, who represents the UNH district in Minnesota, also said Congress must do more to make health care work for everyone.
Because of public outcry, we may see more legislation on UNH and its affiliates in the coming years, but that will depend on the next administration and whether the issue remains in the public eye.
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