Search This Blog

Tuesday, January 6, 2026

Cigna, CVS pare gains after Hunterbrook Media negative report

 Three major healthcare giants have been accused of creating secretive subsidiaries to divert billions of dollars from health plans and patients, according to an investigation published by Hunterbrook on Tuesday.

The report alleges that CVS HealthUnitedHealth Group, and Cigna Group established pharmacy benefit manager (PBM) "Group Purchasing Organizations" (GPOs) to retain rebate money that was supposed to be passed through to health plans.

These three entities - Zinc (CVS), Emisar (UnitedHealth), and Ascent (Cigna) - reportedly generate "astronomical revenue with skeleton staff," making them among the world’s most lucrative enterprises on paper despite having minimal physical presence, according to Hunterbrook’s findings.

The investigation claims these companies created these subsidiaries as a response to growing pressure to pass 100% of drug rebates to health plans. By establishing these GPOs, the companies could technically fulfill rebate pass-through promises while still retaining substantial funds.

Hunterbrook reports that their multinational investigation included interviews with executives and former staffers.

https://ca.investing.com/news/stock-market-news/cvs-unitedhealth-cigna-accused-of-diverting-billions-via-shell-firms-93CH-4388607

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.