Bipartisan Bill Targets Health Insurance Companies’ Pharmacy Divisions
Sen. Josh Hawley (R-MO) and Sen. Elizabeth Warren (D-MA) have joined forces to introduce legislation that would force major health insurance companies to divest their pharmacy divisions. The proposed bill, unveiled Wednesday, is aimed at breaking up what lawmakers describe as a monopoly-like grip on the prescription drug market by companies like CVS Health, UnitedHealth, and Cigna.
The legislation seeks to prevent health insurers and pharmacy benefit managers (PBMs) from owning retail pharmacies, requiring them to sell these businesses within three years. PBMs, which act as intermediaries between drug manufacturers and health plans, are controlled by a few major players that dominate 80% of the market. Critics argue that this structure drives up drug costs and disadvantages independent pharmacies.
“PBMs have manipulated the market to enrich themselves — hiking up drug costs, cheating employers and driving small pharmacies out of business,” Warren said in support of the bill. Hawley echoed these sentiments, stating on X, “The insurance companies are out of control. They need to be broken up. No more buying up doctors’ practices. No more owning pharmacies. Start putting patients first.”
The bill targets industry giants like CVS, which owns the nation’s largest pharmacy chain, as well as Cigna and UnitedHealth, which operate both PBMs and mail-order pharmacy services. Lawmakers argue that this concentration of power allows these companies to steer patients toward their own pharmacies, increasing costs for consumers and reducing competition.
Efforts to bring transparency to PBMs have long faced resistance from healthcare lobbies, but the bipartisan support behind this legislation signals a renewed push for reform. Critics of the bill, however, warn of unintended consequences. JC Scott, president of the Pharmaceutical Care Management Association, argued that PBMs provide affordable and accessible options for patients. CVS spokesperson David Whitrap claimed the bill could lead to higher medication costs while benefiting pharmaceutical companies.
If enacted, this legislation would mark one of the most significant efforts to reform the prescription drug market, with lawmakers focused on reducing costs and increasing competition. The bipartisan push reflects growing frustration over the power of healthcare conglomerates and their impact on patients.
