CVS Health(US:CVS) Benzinga·2026-01-16 07:30Core Insights - The article discusses President Trump's unveiling of "The Great Healthcare Plan," which aims to reform the medical pricing structure by targeting kickbacks from pharmacy benefit managers (PBMs) [1][2]. Group 1: Healthcare Plan Overview - The plan seeks to reduce drug prices and insurance premiums by eliminating kickbacks paid by PBMs to large brokerage middlemen, which are seen as predatory fees that inflate costs for patients [2]. - The White House claims that these kickbacks "deceptively raise the cost of health insurance" and intends to redirect subsidies from large insurance companies to eligible Americans directly [2][3]. Group 2: Expert Validation - Independent analysis supports the administration's view on the PBM issue, with experts describing the PBM model as a "pay for play" system that prioritizes rebates over patient efficacy [4]. - Experts suggest that drug manufacturers would price their products significantly lower—up to five times less—if PBMs were removed from the pricing equation [5]. Group 3: Transparency and Accountability - The plan includes a "Plain-English Insurance" standard, requiring insurers to provide clear rate and coverage comparisons without complex jargon, addressing concerns about undefined terms that facilitate claim denials [6]. - The administration's push for "unprecedented accountability" indicates a potential confrontation with the healthcare lobby [6]. Group 4: Investment Opportunities - A list of top PBM operators and pharmaceutical ETFs is provided for investors considering opportunities in light of the ongoing healthcare reform discussions [7]. - Performance data for various stocks and ETFs is included, showing year-to-date and one-year performance metrics for companies like CVS Health Corp., Cigna Group, and UnitedHealth Group, as well as several pharmaceutical ETFs [8][9].