HEALTH CARE un-covered • 279 implied HN points • 09 Feb 23
- Three major companies, UnitedHealth, CVS/Aetna, and Cigna, are now making most of their money from being middlemen in the prescription drug market rather than from selling health insurance. This means they control a big part of how much patients pay for their medications.
- In 2022, these companies earned over $492 billion from their pharmacy benefit management (PBM) services, showing that this part of their business is growing much faster than their health insurance offerings.
- These companies are expanding into primary care services, like buying healthcare centers, as they face slower growth in their health insurance segments. This shift suggests they are looking for new ways to make profits amid tougher competition.