Shares of health insurers such as UnitedHealth and CVS Health fell on Wednesday after a Wall Street Journal report said a bipartisan group of lawmakers were set to introduce legislation to break up pharmacy-benefit managers.
The Senate bill, sponsored by U.S. Senators Elizabeth Warren and Josh Hawley, will force companies that own health insurers or pharmacy-benefit managers to divest their businesses operating pharmacies within three years, the report said.
Pharmacy-benefit managers negotiate prescription drug prices between insurers, pharmacies and drugmakers, and directly reimburse pharmacies for prescription drugs included under their agreed upon terms.
UnitedHealth shares fell 5%, while CVS Health dropped 4.3% and Cigna slipped 4.4%.
Peers Elevance, Humana and Centene fell between 1% and 3%.
Shares of insurers have come under pressure after Brian Thompson, the CEO of UnitedHealth's health insurance unit, was fatally shot outside a Manhattan hotel last week.
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