Trump’s Drug Prize Order is hiding PBMS: CVS, CIGNA, UNH in Focus as experts emphasize ‘Racket,’ Price determination – CVS Health (NYSE: CVS), Cigna Group (NYSE: CI)

After Donald Trump Last week, the experts signed an Executive Order who lowered the prices for medicines, experts emphasized how pharmacy benefit managers (PBMs) can be struck the most difficult, despite pharmaceutical companies that are confronted with the potential of compressed margins in the midst of poor price power.

What happened: According to Thomas Shipp, The head of stock investigation at LPL Financial, the pressure with which the pharmaceutical manufacturers are confronted to lower prices in their own country, “has the potential to compress margins by eroding the price force and would offer a considerable counterwind to the stock prices of the Medicines Manufacturer.”

However, he explains that the ‘intermediaries’ or PPEs that facilitate and negotiate the distribution of medicines with pharmaceutical drug manufacturers to bear the costs on prescription, have been examined for opaque price practices, such as retaining discounts of drug manufacturers and ‘spreading prices’.

“PBMs pay pharmacies less than what they charge participants in the health plan for medicines,” he said.

Another Executive Order of 15 April signed by Trump called for increased transparency in PPE costs and asked to re -evaluate the role of these intermediaries.

CVS Caremark, owned by CVS Health Corp. CFSExpress scripts, owned by Cigna group CIand Optumrx, owned by UnitedHealth Group Inc. Ultraare the largest PPE companies.

Shipp also underlines that PBM savings are expected, but direct price checks are a long-term risk for drug makers in the US-heavy. Transparency will reveal whether PBM -Marge -erosia can prevent deeper cuts at the manufacturer, he emphasizes.

“Although there are many questions about how these executive orders will be implemented, the net effect after the first news flow seems less harmful to manufacturers of pharmaceutical medicines than for PPE,” SHIPP said.

“Having said, reworking the way in which Americans buy their medicine will take a long time. On the way, the efforts to support the sale of direct to consumers will support manufacturers who lead and those who work together for distribution,” he added.

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Why it matters: Meanwhile, the Billionaire Investor and Shark Tank Fame, Mark Cuban, Called PBMS a “racket” in an X post by explaining that they negotiate discounts and no prices.

“They negotiate on discounts. No prices. In fact, the large PPE PBMS control more than 95 pCt of the discount negotiations. Large pharmaceutical companies cannot negotiate with anyone else. Imo, it’s a racket,” he said.

While the order from 15 April requires transparency in the price, Cuban emphasizes that 30% of the $ 4.9 trillion is attributed to health care expenditure to the overhead insurance companies and creating prize renovations BIG PBMs.