Are CVS, UnitedHealth, Cigna Hiding Billions In PBM Rebates? New Report Claims They Are

Core Viewpoint - A report from Hunterbrook Media claims that major U.S. health care companies, including CVS Health Corp., UnitedHealth Group, and Cigna Group, are allegedly using shell companies to conceal billions of dollars that should be utilized to reduce drug prices for patients [1]. Group 1: Allegations of Financial Manipulation - The report suggests that pharmacy benefit managers (PBMs) are supposed to negotiate discounts with drugmakers and pass those savings to customers, but large insurers have allegedly created secret subsidiaries known as Group Purchasing Organizations (GPOs) to circumvent this obligation [3]. - Instead of taking a cut of the rebates, parent companies have their GPOs collect substantial "fees" from drugmakers, while PBMs claim to pass through 100% of the rebates received, effectively hiding billions in fees from public disclosure [4]. Group 2: Investigation Findings - Hunterbrook's investigation revealed that GPO offices in locations such as Ireland, Switzerland, and Minnesota, despite generating tens of billions of dollars, were largely empty, indicating a lack of legitimate business activity [5]. - The report emphasizes that these GPOs, which are claimed to help lower costs, are actually mechanisms for the insurers to protect their profits by siphoning off drug discounts intended for patients [6].