The reason for the big drop in stock price seems to be the PBM issue in the spotlight. Besides the bi-partisan bills in congress to make the big 3 sell them off, even the incoming trump administration is saying he plans to do away with the PBM’s as they increase the cost of medicine. This is bad news for UHG! Not only is Optum Rx a huge profit center for UHG, but it’s part of the way UHG gets around the government regulations of having to re-invest 85% of money for their advantage plans back into members. See they over pay themselves for prescriptions moving the money to the PBM, and then can legally say to the government “look we only make 12% profit on advantage plans” while the whole time the money was moved to Optum Rx. Genius actually!! This mask has been exposed and Wall Street knows it why the price is going down! Now think of the ramifications of what might come with a forced sell off of Optum Rx. The profit disappears— massive layoffs due to lower profit margins. Reduced benefits on advantage plans making less people want to enroll, making less money, needing less staff to run them…. Etc… 2025 is going to be a very dangerous year to be involved or have anything to do with Medicare advantage plans!! Of course this is a purely hypothetical scenario in my opinion only ( sorry Optum legal)
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Lol, cute you think the government has your best interest in mind.
if you honestly believe that Congress doesn't know what UHG is up to, you haven't been paying attention. UHG pays millions in lobbying.
https://www.opensecrets.org/federal-lobbying/clients/summary?id=D000000348
Congress be looking into closing the loopholes. Why do you think uhg has purchased so many medical groups the last 10 years. They do not have limits on profit margins there and can funnel profits to optum just like the poms. I agree major rule changes will decimate the company. Just hope your not involved in those areas or can survive extra layoffs elsewhere as a collateral damage.
PMB elimination and ending value based insurance method will result in chaos and layoffs.
https://www.cms.gov/blog/medicare-advantage-value-based-insurance-design-vbid-model-end-after-calendar-year-2025-excess-costs
Probably because there are so many issues to track with this company.
Won't make a material difference to the big picture. It won't make dr-g manufacturers lower their price. PBMs will still need to make a profit. It will take away the advantages you mentioned of where to realize the profit, but at best that will be a one time blip. This is not a solution of any kind to our Hhealthcare system. Just politicians looking for campaign contributions.