Insurer stocks fall after Trump says 'we're going to knock out the middleman'

With President-elect Trump's commitment to reducing drug costs by eliminating the role of pharmacy benefit managers, the future profitability of companies like CVS, Cigna, and UnitedHealth is at risk. These firms rely heavily on their pharmacy benefit manager operations for revenue. Unless they can adapt quickly to potential regulatory changes, their stock prices could continue to decline as investors react to these risks.

Cigna's operations, particularly with Express Scripts as a pharmacy benefit manager, are similarly threatened by the possible regulatory changes envisioned by Trump. As discussions around healthcare reform intensify, Cigna's stock may also struggle in the near term as investors factor in the risks associated with their drug pricing strategies.

UnitedHealth Group, through its Optum division, might face similar pressures as CVS and Cigna. The potential dismantling of pharmacy benefit manager roles could significantly impact their revenue distribution, leading to negative investor sentiments in the short term.