For years, Congress has signaled that it wants to crack down on Pharmacy Benefit Managers, the middle men that have come under fire for their vertical integration with insurers and their role in spiking drug costs. This week, it finally happened via the Consolidated Appropriations Act of 2026, promptingemployer groups including the Purchaser Business Group on Health (PBGH) and the ERISA Industry Committee to cheer its passage.
CVS Health ( NYSE: CVS) delivered a solid revenue beat in Q4 2025, though adjusted earnings declined year-over-year despite exceeding Wall Street expectations. The 8.2% revenue increase to $105.69 billion marked the company's strongest quarterly top-line growth of the year. However, adjusted EPS of $1.09 declined from $1.19 in Q4 2024, pressured by Medicare Part D headwinds from Inflation Reduction Act seasonality changes.
Fewer choices may be on the menu again as Medicare patients shop for prescription coverage this fall. The number of available, stand-alone drug plans has fallen for a few years, and that trend will continue for 2026. Most markets will still have several choices, but some options are becoming particularly sparse for shoppers with low-income subsidies. And help may be harder to find because some insurers no longer pay brokers commissions for new business.