A new bipartisan bill introduced in Congress could force health insurance companies to sell their pharmacy divisions. Backed by Sen. Josh Hawley (R-MO) and Sen. Elizabeth Warren (D-MA), the legislation aims to break up the dominance of major healthcare conglomerates like CVS Health, UnitedHealth, and Cigna.
The proposed law would require these companies to divest their pharmacy operations within three years, addressing concerns about conflicts of interest and inflated drug costs. CVS, for instance, owns the largest chain of retail pharmacies in the nation, along with a pharmacy benefit manager (PBM) and a health insurance provider. Critics argue this structure unfairly drives up costs for patients.
“PBMs have manipulated the market to enrich themselves — hiking drug prices and driving independent pharmacies out of business,” Warren said in support of the legislation. Hawley, echoing the sentiment, stated on X, “The insurance companies are out of control. They need to be broken up to start putting patients first.”
PBMs act as intermediaries between drug manufacturers, insurers, and pharmacies. Three major PBMs — CVS Caremark, Cigna’s Express Scripts, and UnitedHealth’s Optum Rx — control 80% of the prescription drug market. Lawmakers argue this concentration of power allows them to favor their own pharmacies and mail-order services, limiting patient choice.
The Pharmaceutical Care Management Association, a PBM lobbying group, defended the current system, claiming it offers patients affordable and convenient access to medications. A CVS spokesperson warned that the legislation could increase medication costs and benefit pharmaceutical companies.
This bill represents the most aggressive effort to reform the prescription drug market in years. With bipartisan backing, it signals a growing push to curb the influence of healthcare giants and prioritize the needs of patients over corporate profits.
