Sentiment turned almost overnight. CVS stock had surged 11% and UNH 5% on Nov. 6, as investors bet that the Republican electoral sweep would mean lighter regulation for the group. The reality looks a lot different five weeks later. "Investors are now forced to contemplate multiple regulatory or legislative headwinds in both the core MCO (managed care organization) and PBM spaces," Hill wrote. On top of that, Elon Musk's Department of Government Efficiency program will likely target health care spending as a source of budget savings.
The new legislation, cleverly named the Patients Before Monopolies (PBM) Act, would likely force CVS to split its retail pharmacy business, as well as its mail and specialty pharmacy services, from its Caremark PBM. "We estimate CVS could lose over 50% of its consolidated operating earnings," Hill wrote
https://www.investors.com/news/cvs-stock-warren-pbm-legislation-unitedhealth-cigna/