Bipartisan Lawmakers Seek to Break Up Giant Health Care Conglomerates

The proposed legislation poses a significant threat to the business models of major health care companies that operate as both insurers and pharmacy benefit managers. If passed, this could lead to substantial operational changes for CVS Health, UnitedHealth Group, and Cigna, adversely impacting their stock prices.

UnitedHealth Group, being a major player in both insurance and pharmacy benefit management, is likely to face increased regulatory pressure and potentially reduced market power. The divestiture of its pharmacy businesses could negatively affect its revenue streams, making it a candidate for negative stock performance.

Cigna, similarly positioned within the market as both an insurer and pharmacy manager, could be impacted negatively if the legislation passes. Investors should prepare for potential declines in stock value due to regulatory uncertainties.