UnitedHealth, CVS and Cigna Sue to Block 2 State Breakup Laws
Updated
Updated · The New York Times · Jul 8
UnitedHealth, CVS and Cigna Sue to Block 2 State Breakup Laws
1 articles · Updated · The New York Times · Jul 8
Summary
Arkansas and Tennessee have become the first major test cases, with UnitedHealth, CVS and Cigna filing lawsuits to stop new laws that would curb how they operate across drug benefits and pharmacy businesses.
The measures bar insurance conglomerates from both managing prescription benefits and running retail or mail-order pharmacies, reflecting lawmakers’ push to weaken companies they say have grown too dominant.
CVS sued Tennessee within hours of Gov. Bill Lee signing the law in May, and UnitedHealth, Express Scripts and an industry trade group followed with additional federal challenges within weeks.
The companies argue the restrictions would cut patient access and raise drug costs, while supporters say separating those businesses would reduce pricing practices that now inflate prescription bills.
Similar proposals are already circulating in other states and Washington, widening a regulatory fight over vertically integrated health care empires.
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Breaking Up the PBM Giants: 2026 State Lawsuits and the Fight Over Pharmacy Ownership
Overview
As of July 2026, major pharmacy benefit managers (PBMs) like CVS Health, UnitedHealth, and Cigna are facing major lawsuits over new state laws in Tennessee and Arkansas that aim to limit their market power. These laws respond to concerns that PBMs’ vertical integration—where companies control insurance, PBMs, and pharmacies—drives up drug prices and harms independent pharmacies. States argue that PBMs use practices like spread pricing and steering patients to their own pharmacies, which can disadvantage smaller competitors and raise costs for patients. The outcomes of these legal battles could reshape drug pricing, pharmacy access, and the future structure of the pharmaceutical supply chain.