Useful information
Prime News delivers timely, accurate news and insights on global events, politics, business, and technology
Actions of UnitedHealth Group (NYSE: UNH) Today we push back again on reports that the Senate is working on a bill that would force health insurers like UnitedHealth to get rid of their pharmacy benefit managers (PBMs) within three years.
As a result, the stock was trading down 5% as of 11:44 a.m. ET. Other health insurance stocksincluding Cigna and CVS HealthThey were also depressed by the news.
The bill, which was reported by The Wall Street JournalIt appears to have bipartisan support, as it was sponsored by Democrat Elizabeth Warren and Republican Josh Hawley. The bill seeks to eliminate a key source of bureaucracy in healthcare, as pharmacy benefit managers are companies that act as middlemen in the pharmaceutical industry and operate prescription drug programs on behalf of insurance companies. There have been previous regulatory efforts to diminish its power.
UnitedHealth, the nation’s largest health insurance company, owns one of the largest PBMs, Optum Rx, which in 2023 managed $159 billion in pharmaceutical spending and $63 billion in specialty pharmaceutical spending.
UnitedHealth, one of the most valuable companies in the country with a market capitalization of around $500 billion, has grown both organically and through acquisitions and is now a growing business that covers almost every aspect of the medical attention.
It’s unclear what will come of the new Senate bill, but the bipartisan sponsorship seems like a promising sign.
UnitedHealth’s practices have come under scrutiny since the murder of a top company executive last week. In the wake of his death, social media was filled not with sympathy but with expressions of outrage toward UNH and the rest of the insurance industry. Congressman Dean Philips, who represents UNH’s district in Minnesota, also said Congress must do more to make health care work for everyone.
Given the public outcry, we could see more regulation of UNH and its peers in the coming years, but that will depend on the next administration and whether the story remains in the public consciousness.
Have you ever felt like you missed the boat when buying the hottest stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double bet” actions recommendation for companies that believe they are about to explode. If you’re worried you’ve missed an opportunity to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
