Sens. Elizabeth Warren and Josh Hawley don’t usually see eye to eye. Warren, a Democrat from Massachusetts, ran for president in 2020, while Hawley, a Republican from Missouri, is a supporter of former President Trump. But they are joining forces on a new bill aimed at two crucial issues—health care and affordability.
Their proposed legislation seeks to dismantle what they call “Big Medicine.” This initiative targets large healthcare corporations that they believe inflate prescription drug prices and reduce competition. Warren expressed her frustration in a statement, emphasizing that these huge companies complicate the system and make healthcare unaffordable. She believes that breaking them up is essential for reform.
Hawley echoed her sentiments. He pointed out that Americans are facing rising healthcare costs while the quality of care declines. He criticized major pharmaceutical companies and insurers for prioritizing profit over people. “Working Americans deserve better,” he asserted.
The bill specifically targets large companies like UnitedHealthcare and CVS Health. These organizations exert significant control over various parts of the healthcare industry—from doctors’ offices to pharmacies and Pharmacy Benefit Managers (PBMs) that act as middlemen between drug manufacturers and insurers. The legislation would prevent any healthcare company from owning both sides of a transaction, aiming to lessen conflicts of interest and promote fairer pricing.
For context, UnitedHealthcare owns Optum Rx, a PBM that manages drug benefits. CVS Health owns both the PBM Caremark and the insurance provider Aetna, which creates a scenario where these companies may steer patients toward their own services, ultimately driving up costs. According to KFF, nearly 80% of prescription drug claims are managed by the top three PBMs—Optum, Caremark, and ExpressScripts—all owned by larger companies with vested interests.
This push for change comes at a time when healthcare costs are a hot-button issue in America. A recent survey indicated that 66% of Americans feel healthcare affordability is a top priority for lawmakers. The senators argue that their bill could lead to genuine competition and, in turn, lower costs.
The pharmaceutical industry has resisted calls for reform, insisting the current model benefits consumers. For example, during a recent congressional hearing, CVS Health’s president dismissed concerns about market concentration. However, both Republican and Democratic leaders are increasingly skeptical of PBMs.
Warren and Hawley’s efforts to regulate the industry reflect a growing bipartisan consensus on the need for healthcare reform, especially as the midterm elections loom. Their history of working together on legislation demonstrates a shared commitment to addressing these pressing issues. They recently proposed a similar PBM bill in 2024, highlighting this ongoing collaboration.
As this legislation develops, it will be interesting to observe the reactions from both voters and industry stakeholders. There’s no doubt that healthcare is a complex issue affecting millions. With both parties keenly aware of its implications, this new bill could become a pivotal point in the upcoming elections.
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