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


Published on 2024-12-16 18:00:49 - Reuters
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  • Shares of health insurers operating pharmacy benefit managers fell on Monday after U.S. President-elect Donald Trump called them middlemen who drive up costs and said he plans to eliminate their role.

On December 16, 2024, shares of major health insurers like UnitedHealth Group, Humana, and CVS Health experienced a decline following comments from former President Donald Trump. Trump, speaking at a campaign event in Reno, Nevada, criticized the role of pharmacy benefit managers (PBMs) in the healthcare system, stating, "We're going to knock out the middleman." His remarks suggested a potential policy shift that could impact how these companies operate, particularly in managing drug pricing and negotiations. This led to a drop in stock prices as investors reacted to the uncertainty surrounding future regulations and the potential reduction in profits for these insurers.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/healthcare-pharmaceuticals/insurer-stocks-fall-after-trump-says-were-going-knock-out-middleman-2024-12-16/ ]