Latest news with #CVSHealth
Yahoo
2 days ago
- Business
- Yahoo
Nevadans deserve affordable prescriptions, not PBM exploitation
Three pharmacy benefit managers — CVS Health, Optum Rx, and Express Scripts – control 80% of the prescription drug market. Each of them are owned by giant health insurance companies. (Photo: Lynne Terry/Oregon Capital Chronicle) The Nevada legislative session will end in just a few days — and time is running out to pass legislation that'd save Nevadans millions of dollars on their pharmacy bills. Senate Bill 316 would curb the power of pharmacy benefit managers, the secretive middlemen hired by insurers to negotiate prices with drugmakers and process prescription claims. Because PBMs dictate which drugs an insurer covers — and, thus, which medications patients can access — they wield immense power over our health care. And they use that power to line their own pockets at the expense of Nevada patients and small businesses. Here's how it works. Drugmakers offer insurers and their pharmacy benefit managers (PBMs) discounts and rebates on medications — in exchange for agreeing to cover a medicine and steer patients toward it. PBMs profit by keeping a share of those discounts and rebates, and also by charging administrative fees based on a percentage of the drug's nominal 'list' price. Since expensive drugs lead to larger discounts, fees, and profits, PBMs have a perverse incentive to steer patients toward higher-priced drugs. The result? PBMs secretly extract billions of dollars from drugmakers annually, while patients pay higher out-of-pocket costs for prescription medications and are denied coverage for cheaper alternatives. This dynamic is devastating for Nevadans, over 80% of whom report worrying about affording future healthcare costs. PBMs' manipulation of drug coverage often strips doctors and patients of the ability to decide which medication is best for an individual's healthcare needs. And PBMs harm patients in other ways as well — most notably by putting trusted, local community pharmacies out of business and forcing Nevadans to travel much further to pick up prescriptions. PBMs often reimburse these independent pharmacies much less than their affiliated pharmacies. A Federal Trade Commission report examined reimbursement for two drugs and found that PBMs paid their affiliated pharmacies 20 to 40 times more than the National Average Drug Acquisition Cost. In some cases, independent pharmacies actually lose money every time a patient fills a prescription due to PBM clawbacks and fees. This has put immense financial strain on our state's independent pharmacies, which filled 5 million prescriptions in 2023. Indeed, over the last decade, about one in ten rural independent pharmacies across the nation have closed. That limits patient choice and makes it harder for Nevadans to fill urgently needed prescriptions. PBMs' exploitative practices also hurt small businesses in Nevada, which are already operating on thin margins. As the costs of prescriptions and employee health plans rise, small companies are forced to cut back on expansion plans, hiring, and employee benefits. SB 316 would put an end to this abuse and enact reforms that Nevadans overwhelmingly support. For starters, the bill would tie a PBM's compensation to the value of the service it provides, instead of the list price of medications. That would eliminate PBMs' incentive to favor more expensive drugs over lower-cost ones. In a recent poll, 85% of state residents supported such a policy. The legislation would also create more transparency and accountability over PBM practices. Today, the middlemen often operate in a black box, with patients and other health plans unaware of the consolidation and conflicts of interest that dictate PBM practices. SB 316 would establish a duty of care, requiring PBMs to put patients' interests ahead of their own. Roughly nine in ten Nevadans are in favor of such a provision, according to the new poll. The bill would further prohibit PBMs from reimbursing any pharmacy less than it reimburses an affiliated pharmacy. That would stop us from losing yet more independent pharmacies that provide critical services to patients across the state. SB 316 would ensure much-needed oversight of PBMs and restore fairness to the marketplace in the state. More than 80% of Nevadans are very or extremely concerned that no such oversight currently exists. Legislators must not let the session expire without easing those concerns — or preventing PBMs from exploiting Nevada businesses and patients for their own financial gain.
Business Journals
3 days ago
- Business
- Business Journals
BostonCISO ORBIE Leadership Award recipient: CVS Health CISO Chandra McMahon on why the role is more strategic than ever — and advice for future leaders
expand Chandra McMahon, senior vice president and chief information security officer (CISO) at CVS Health . Chandra McMahon is a seasoned cybersecurity executive and board member with over 30 years of experience leading complex security and technology programs across the health care, telecommunications and defense industries. She most recently served as senior vice president and chief information security officer (CISO) at CVS Health, where she was responsible for the company's enterprise-wide information security strategy, governance, risk management and operations. In this role, she led initiatives to protect customer and company data and also acted as the executive sponsor of CVS Health's Women in Technology forum, advocating for women's leadership in technology. Prior to CVS Health, McMahon was the CISO at Verizon, overseeing the company's cybersecurity strategy and operations. Earlier in her career, she held multiple leadership roles at Lockheed Martin, including vice president and CISO, vice president of Commercial Markets and president of Lockheed Martin Corporate Properties Inc. McMahon currently serves on the board of directors at EPAM Systems as an independent director and member of the audit committee. She also serves on the Aspen Institute Cyber Strategy Group, a cross-sector public-private forum focused on translating pressing cybersecurity conversations into action. McMahon holds a Bachelor of Science in Industrial Engineering and Operations Research from Virginia Tech, a Master in Engineering Science from Penn State University and several cybersecurity certifications. Recognized as one of the Top 100 CISOs by Security Current CISO Connect and inducted into the CSO Hall of Fame, McMahon is also a passionate advocate for reducing burnout and improving mental health within the cybersecurity community. McMahon is the recipient of the Leadership Award as part of the 2025 BostonCISO ORBIE Awards. She provided insights below about the biggest challenges facing CISOs and advice for future generations. What does the Leadership Award honor mean to you? Winning the CISO Leadership Award is a profound honor that reflects the dedication and brilliance of the cybersecurity teams I have had the privilege of leading. It signifies more than personal achievement — it's a testament to our shared commitment to safeguard customer information, enable seamless access to services and build a future where trust, innovation and customer service go hand in hand. This award inspires us to keep pushing boundaries, knowing that our work truly makes a difference for every customer we serve. What are some of the biggest challenges facing CISOs? CISOs today face a perfect storm of challenges: delivering business value and safeguarding asset integrity while navigating the explosive proliferation of AI — which has accelerated the speed, scale and sophistication of cyber threats across an ever-expanding enterprise landscape. Attackers now leverage AI to automate attacks and exploit vulnerabilities faster than traditional defenses can respond, while defenders race to harness the same technologies for real-time detection and response. The complexity of managing security across interconnected supply chains, cloud environments and third parties increases risk and reduces visibility, making holistic oversight critical. At the same time, CISOs must clearly demonstrate the value of cybersecurity investments to boards and stakeholders, translating technical risk into business impact and fostering trust at every level. Effective CISOs now demand a rare blend of technical expertise, business acumen and strategic leadership to protect not just data, but the organization's reputation and future. How has the role of the CISO evolved in recent years? The CISO role has rapidly transformed from a technical guardian to a strategic business leader. No longer confined to IT, today's CISOs are integral to executive decision-making, often reporting directly to the CEO and holding a seat at the boardroom table. Their responsibilities now include shaping enterprise risk strategy, driving digital transformation and aligning security with business objectives. As organizations digitize and regulatory scrutiny intensifies, CISOs must bridge technical and business language, manage stakeholder expectations and foster a culture of resilience and trust. The modern CISO is a catalyst for innovation, a builder of cross-functional alliances and a visible champion for both security and value realization — proving that cybersecurity is not just a technical imperative, but a foundational business enabler. Do you have any advice for future generations of CISOs? My advice to the next generation of cybersecurity professionals is to embrace your role as both protector and innovator. Find your passion within this vast field — whether it's hands-on technical work, strategic leadership or bridging the gap between technology and your customers — and let that guide your journey. Marrying purpose with passion in cybersecurity means finding deep meaning in every challenge and every solution. When you align your drive to innovate with the higher calling of protecting lives and empowering communities, your work becomes more than just a job — it becomes a mission. Stay curious, adaptable and committed to continuous growth. Seek mentors, build your network and share what you learn — your voice and expertise can inspire others and drive meaningful change. In this field, passion ignites progress, and purpose gives it direction; together, they transform obstacles into opportunities to make a real, lasting difference. Above all, remember that cybersecurity, whether in health care or any other industry, is ultimately about people. Your vigilance protects not just data, but the trust, dignity and well-being of every patient, customer and individual you serve. Lead with integrity, collaborate across disciplines and let your sense of purpose fuel your pursuit of excellence. The future of our profession — and the technological advancement and security of countless others — will be shaped by your dedication and vision.
Yahoo
3 days ago
- Business
- Yahoo
1 Large-Cap Stock with Exciting Potential and 2 to Think Twice About
Large-cap stocks are known for their staying power and ability to weather market storms better than smaller competitors. However, their sheer size makes it more challenging to maintain high growth rates as they've already captured significant portions of their markets. These trade-offs can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you find high-quality companies that can grow their earnings no matter what. Keeping that in mind, here is one large-cap stock with attractive long-term potential and two whose momentum may slow. Market Cap: $79.42 billion With over 9,000 retail pharmacy locations serving as neighborhood health destinations across America, CVS Health (NYSE:CVS) operates retail pharmacies, provides pharmacy benefit management services, and offers health insurance through its Aetna subsidiary. Why Does CVS Give Us Pause? Scale is a double-edged sword because it limits the company's growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 7% for the last two years Estimated sales growth of 2.5% for the next 12 months implies demand will slow from its two-year trend Earnings per share fell by 2.9% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable At $62.78 per share, CVS Health trades at 10.2x forward P/E. Read our free research report to see why you should think twice about including CVS in your portfolio, it's free. Market Cap: $33.52 billion With over 2,500 research experts guiding organizations through complex technology landscapes, Gartner (NYSE:IT) provides research, advisory services, and conferences that help executives make better decisions about technology and other business priorities. Why Are We Hesitant About IT? Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 9.3% annually Gartner's stock price of $435.88 implies a valuation ratio of 35.1x forward P/E. If you're considering IT for your portfolio, see our FREE research report to learn more. Market Cap: $61.71 billion Aiming to be a one-stop shop for the DIY customer, AutoZone (NYSE:AZO) is an auto parts and accessories retailer that sells everything from car batteries to windshield wiper fluid to brake pads. Why Will AZO Beat the Market? Store expansion strategy is justified by its healthy same-store sales Unique assortment of products and pricing power result in a best-in-class gross margin of 51.8% Robust free cash flow margin of 10.6% gives it many options for capital deployment AutoZone is trading at $3,700 per share, or 22.3x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Daily Mail
3 days ago
- Business
- Daily Mail
CVS to shutter 270 stores this year
Published: | Updated: The pharmacy retail industry is struggling. CVS, the chain with over 9,000 locations across the US, confirmed to that 270 locations would shutter this year. The closures, which the company initially announced in October 2024, have been underway in several states, with Alabama , New York, Maryland , and Missouri seeing the largest amount of closures. But it also opened over 100 new locations, including 30 inside of Target locations. 'We're focused on ensuring we have the right kinds of stores and the right number of stores in the right locations,' a CVS spokesperson told 'Even after the realignment work, 85 percent of people in the US will still live within 10 miles of a CVS Pharmacy,' the spokesperson added. Pictured: David Joyner, executive vice president and president of pharmacy services at CVS Health Corp. 'And, while we're closing certain locations, we're also opening stores and pharmacies in areas where there's a need,' the spokesperson added. The changes come as pharmacy retailers face severe headwinds against their critical businesses. Upstart online brands — like Capsule and Blink Health — are attempting to eat into brick-and-mortar sales with more convenient delivery models. Even Amazon entered the pharmaceutical space, launching its medication delivery platform in 2020 . 'Luckily I don't depend only on CVS,' one Redditor said about the company's decision to shutter stores while facing the increasing competition. Meanwhile, front-store retail sales, where customers grabbed toothpaste and Tylenol while raking in millions for pharmacies, have cooled. Shoppers have largely turned to lower-priced retailers while the US economy struggles with sticky inflation after the 2020 pandemic, retail experts have told These challenges have sent CVS competitors into tailspins. Several brands have launched mass closure events or declared bankruptcy. Walgreens has been pressing ahead with plans to shutter hundreds of stores. The pharmacy brand pledged to shutter 1,200 locations by 2027. The company, struggling to compete with lower-cost models and lampooned by billions of dollars of debt from opioid settlements, said it would shutter all of its locations. 'This is going to cause a pharmacy desert in my neighborhood and prescription nightmare,' one worried customer wrote on Reddit. CVS has stepped in, purchasing pharmacy locations from Rite Aid. They're expected to take on the most customers, having bid on the prescription files of 625 Rite Aid pharmacies across fifteen states.
Forbes
3 days ago
- Business
- Forbes
CVS Sues Arkansas Over Law Banning PBM Ownership Of Pharmacies
CVS Health Thursday sued Arkansas, trying to thwart a law the healthcare company said would lead to ... More the closure of all 23 CVS drugstores in the state, the company said May 29, 2025. In this photo, a sign marks the location of a new CVS pharmacy May 5, 2004 in Chicago, Illinois. (Photo by) CVS Health Thursday sued the state of Arkansas, trying to thwart a law the healthcare company said would lead to the closure of all 23 CVS drugstores in the state. At issue is legislation known as Act 624 that was signed into law last month by Republican Gov, Sarah Huckabee Sanders that pharmacy benefit managers (PBMs) from owning and operating pharmacies. The law would be a first for a state in the U.S. and take aim at the rapidly growing business model of vertical integration that involves ownership of health insurers and medical care providers by the same company. CVS, the nation's largest retail pharmacy operator, also owns Caremark, one of the nation's largest managers of pharmacy benefits for employers, private insurers and government health insurance programs. CVS also owns Aetna, the nation's third largest health insurance company with more than 27 million health plan subscribers. 'We've filed a lawsuit to block Act 624, a harmful law that will shut down 23 CVS Pharmacy locations, eliminate hundreds of jobs, and drive-up costs for Arkansans,' CVS said in a statement Thursday evening. 'This unconstitutional law puts local politics ahead of patients, restricting their access to life-saving medications and undermining fair competition.' Gov. Huckabee's office couldn't be reached Thursday evening for comment. Huckabee, however, earlier this year called the law necessary to curb what she has called abuse business practices by PBMs. 'These massive corporations are attacking our state because we will be the first in the country to hold them accountable for their anticompetitive actions,' she said. But CVS Thursday said the legislation Huckabee signed into law will hurt patients and cut access to medical care, particularly in a rural state like Arkansas. 'Arkansas lawmakers crafted the law to exclude CVS Health's pharmacy operations while protecting in-state pharmacy businesses, which often charge higher prices," CVS said. 'There is no way around the fact that Act 624 will limit patients' options and increase the cost of their medicines.' CVS said the law, violates the U.S. Constitution's Dormant Commerce Clause, which 'prevents states from discriminating against or unfairly burdening out-of-state business.' 'Act 624 also is unlawful because it violates Equal Protection rights and is preempted by federal law,' CVS said. 'We have a right and responsibility to challenge this harmful policy to protect patient care and fair competition.'
