PBMs have faced years-long scrutiny from Congress and the Federal Trade Commission over allegations they inflate drug costs for patients to boost their profits.
The declining stocks include UnitedHealth Group , Cigna and CVS Health , which operate three of the nation's largest private health insurers and drug supply chain middlemen called pharmacy benefit managers, or PBMs.
Shares of major health-care companies fell as much as 5% on Wednesday as investors feared pressure from lawmakers and patients could force changes to their business models.
Elizabeth Warren, D-Mass., and Josh Hawley, R-Mo., would force the companies that own health insurers or PBMs to divest their pharmacy businesses within three years, the Journal reported.
The largest PBMs – UnitedHealth Group's Optum Rx, CVS Health's Caremark and Cigna's Express Scripts – are all owned by or connected to health insurers.
Persons:
Brian Thompson, Elizabeth Warren, Josh Hawley, Warren, PBMs, —, Bertha Coombs
Organizations:
New York Stock Exchange, Wall Street, Federal Trade Commission, UnitedHealth, CVS Health, Senate, Sens, CVS, Cigna's, FTC
Locations:
U.S