Insurer Stocks Drop as Trump Targets Pharmacy Benefit Managers

Insurer Stocks Drop as Trump Targets Pharmacy Benefit Managers

Health insurer stocks fell Monday after President-elect Donald Trump criticized pharmacy benefit managers (PBMs), calling them “middlemen” who drive up prescription costs. Trump announced plans to eliminate their role during a news conference at his Mar-a-Lago club in Florida.

CVS Health (CVS) dropped 5.6%

Cigna (CI) fell 4.3%

UnitedHealth Group (UNH) declined 3.8%

These companies dominate the U.S. PBM market through Caremark, Express Scripts, and Optum, respectively. PBMs negotiate drug prices and manage drug coverage for health plans, primarily serving employers and government programs.

Trump accused PBMs of profiting excessively while adding little value, stating, “They make more money, frankly, than the drug companies… I don’t know who these middlemen are, but they are rich.”