{"id":49694,"date":"2023-08-17T14:42:02","date_gmt":"2023-08-17T18:42:02","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/cvs-cigna-stocks-drop-as-insurers-move-to-amazon-hints-at-potential-changes\/"},"modified":"2023-08-17T14:42:05","modified_gmt":"2023-08-17T18:42:05","slug":"cvs-cigna-stocks-drop-as-insurers-move-to-amazon-hints-at-potential-changes","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=49694","title":{"rendered":"CVS, Cigna Stocks Drop as Insurer&#8217;s Move to Amazon Hints at Potential Changes"},"content":{"rendered":"<div id=\"js-article__body\" itemprop=\"articleBody\" data-sbid=\"WP-BAR-0000722302\">\n<div data-layout=\"wrap\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetMediaIllustration\n          wrap\n  article__inset\n        article__inset--type-InsetMediaIllustration\n          article__inset--wrap\n    article__inset--lead\n  \"><\/p>\n<p>        <!-- eventually when we know what this card will be we can change it and leave this one --><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        img-wrap\n        article__inset__image\n      \" itemscope=\"\" itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<\/figure><\/div>\n<p>Shares of the companies that own the U.S.\u2019s three largest pharmacy-benefit managers fell early Thursday, following an announcement from a major nonprofit health insurer that it was turning away from the pharmacy benefit management industry.<\/p>\n<p>The decision by the insurer, Blue Shield of California, which was earlier reported by The Wall Street Journal, could pose a major threat to the three big pharmacy-benefit managers, which are owned by<br \/>\n        CVS Health<br \/>\n       (ticker: CVS),<br \/>\n        Cigna<br \/>\n       (CI), and<br \/>\n        UnitedHealth Group<br \/>\n       (UNH). The pharmacy-benefit managers stand between health insurers and drug companies, negotiating prices on behalf of the insurers.<\/p>\n<div class=\"paywall\">\n<p>But now, Blue Shield of California says it will go without a PBM, instead managing its drug benefits by cobbling together five services that compete with certain aspects of the PBM business. Its new offering will include at-home drug delivery from<br \/>\n        Amazon<span>,<\/span><br \/>\n       while CVS will continue handling specialty drugs for Blue Shield of California\u2019s 4.8 million members. Access to low-cost medications will come via Cost Plus Drug Company, the mail-order pharmacy owned by Mark Cuban, the billionaire owner of the Dallas Mavericks.<\/p>\n<p>\u201cWe look forward to providing care for Blue Shield of California\u2019s members who require complex, specialty medications\u2014as we have for nearly two decades,\u201d CVS said in an emailed statement.<\/p>\n<p>Shares of CVS, which currently provides pharmacy benefit management services to Blue Shield of California, were down 9.2%. In a note early Thursday, Evercore ISI analyst Elizabeth Anderson estimated that the decision by Blue Shield of California alone could cut CVS\u2019s 2025 earnings by $0.02 to $0.06 per share.<\/p>\n<p>\n        Cigna<br \/>\n       shares fell 6.4%, while UnitedHealth shares slipped 1.3%.<\/p>\n<p>The business model of the pharmacy-benefit managers, or PBMs, has come in for growing criticism in recent years. PBMs are opaque middlemen, offering little disclosure regarding the deals they cut. Drugmakers and other critics have characterized them as extracting profits while offering little value, but PBMs say their negotiating power drives savings for their customers..<\/p>\n<p>Blue Shield\u2019s move could raise worries that other insurers might do the same. While Aetna, Cigna, and UnitedHealthcare are likely captive markets for the PBMs, as each shares a corporate parent with a major pharmacy benefit manager, smaller and regional insurers could be in play. <\/p>\n<p>\u201cMany in the industry will likely be watching this situation closely as managing the five partnerships could prove tricky,\u201d Anderson wrote Monday. \u201cBut if BS of CA is successful, we could see additional regionals move more in a similar direction.\u201d<\/p>\n<p>Blue Shield said he plan could save it around $500 million annually and will fully launch in 2025 after a limited rollout next year.<\/p>\n<p>\n        Amazon<br \/>\n      \u2018s increasing presence in healthcare has been a growing concern for CVS stock, as the companies have clashed in bids to acquire health-services providers. <\/p>\n<p>\u201cWith the help of Amazon\u2019s upfront pricing, on-time delivery, and round-the-clock access to clinical care, we can provide a customer-centric pharmacy experience that supports better health outcomes,\u201d said John Love, vice president of Amazon Pharmacy, in a joint statement with Blue Shield of California. <\/p>\n<p>Write to Adam Clark at adam.clark@barrons.com<\/p>\n<\/p><\/div>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.marketwatch.com\/articles\/cvs-stock-caremark-amazon-1bfcc05c?mod=markets\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Shares of the companies that own the U.S.\u2019s three largest pharmacy-benefit managers fell early Thursday, following an announcement from a major nonprofit health insurer that it was turning away from the pharmacy benefit management industry. The decision by the insurer, Blue Shield of California, which was earlier reported by The Wall Street Journal, could pose [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":49695,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-49694","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>CVS, Cigna Stocks Drop as Insurer&#039;s Move to Amazon Hints at Potential Changes | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Shares of the companies that own the U.S.\u2019s three largest pharmacy-benefit managers fell early Thursday, following an announcement from a major nonprofit\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=49694\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CVS, Cigna Stocks Drop as Insurer&#039;s Move to Amazon Hints at Potential Changes | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"Shares of the companies that own the U.S.\u2019s three largest pharmacy-benefit managers fell early Thursday, following an announcement from a major nonprofit\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=49694\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-17T18:42:02+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-17T18:42:05+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/08\/1692297723_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=49694#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=49694\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"CVS, Cigna Stocks Drop as Insurer&#8217;s Move to Amazon Hints at Potential Changes\",\"datePublished\":\"2023-08-17T18:42:02+00:00\",\"dateModified\":\"2023-08-17T18:42:05+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=49694\"},\"wordCount\":524,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Markets\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=49694#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=49694\",\"url\":\"https:\/\/ifintechworld.com\/?p=49694\",\"name\":\"CVS, Cigna Stocks Drop as Insurer's Move to Amazon Hints at Potential Changes | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-08-17T18:42:02+00:00\",\"dateModified\":\"2023-08-17T18:42:05+00:00\",\"description\":\"Shares of the companies that own the U.S.\u2019s three largest pharmacy-benefit managers fell early Thursday, following an announcement from a major nonprofit\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=49694#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=49694\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=49694#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"CVS, Cigna Stocks Drop as Insurer&#8217;s Move to Amazon Hints at Potential Changes\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"CVS, Cigna Stocks Drop as Insurer's Move to Amazon Hints at Potential Changes | iFintechWorld","description":"Shares of the companies that own the U.S.\u2019s three largest pharmacy-benefit managers fell early Thursday, following an announcement from a major nonprofit","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=49694","og_locale":"en_US","og_type":"article","og_title":"CVS, Cigna Stocks Drop as Insurer's Move to Amazon Hints at Potential Changes | iFintechWorld","og_description":"Shares of the companies that own the U.S.\u2019s three largest pharmacy-benefit managers fell early Thursday, following an announcement from a major nonprofit","og_url":"https:\/\/ifintechworld.com\/?p=49694","og_site_name":"iFintechWorld","article_published_time":"2023-08-17T18:42:02+00:00","article_modified_time":"2023-08-17T18:42:05+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/08\/1692297723_social.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=49694#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=49694"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"CVS, Cigna Stocks Drop as Insurer&#8217;s Move to Amazon Hints at Potential Changes","datePublished":"2023-08-17T18:42:02+00:00","dateModified":"2023-08-17T18:42:05+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=49694"},"wordCount":524,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Markets"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=49694#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=49694","url":"https:\/\/ifintechworld.com\/?p=49694","name":"CVS, Cigna Stocks Drop as Insurer's Move to Amazon Hints at Potential Changes | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-08-17T18:42:02+00:00","dateModified":"2023-08-17T18:42:05+00:00","description":"Shares of the companies that own the U.S.\u2019s three largest pharmacy-benefit managers fell early Thursday, following an announcement from a major nonprofit","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=49694#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=49694"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=49694#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"CVS, Cigna Stocks Drop as Insurer&#8217;s Move to Amazon Hints at Potential Changes"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/49694","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=49694"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/49694\/revisions"}],"predecessor-version":[{"id":49696,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/49694\/revisions\/49696"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/49695"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=49694"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=49694"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=49694"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}