Trump's Proposal to Expand Medicare Coverage for GLP-1 Drugs Could Cost Insurers Billions
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
A new analysis suggests President Donald Trump's proposal to expand Medicare coverage for weight-loss GLP-1 drugs could cost health insurers billions in the first year, Bloomberg's Rachel Cohrs Zhang reports. While the administration argues negotiated lower drug prices would offset the expense and avoid burdening taxpayers, the findings raise concerns about the near-term financial impact of broadening access, the report says. Publicly traded companies in the insurer space include CVS Health (CVS), Centene (CNC), Cigna (CI), Elevance Health (ELV), Humana (HUM), Molina Healthcare (MOH) and UnitedHealth (UNH), while public companies making GLP-1 drugs include Novo Nordisk (NVO) and Eli Lilly (LLY).
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Analyst Views on CI
Wall Street analysts forecast CI stock price to rise
16 Analyst Rating
14 Buy
2 Hold
0 Sell
Strong Buy
Current: 270.020
Low
300.00
Averages
335.63
High
378.00
Current: 270.020
Low
300.00
Averages
335.63
High
378.00
About CI
The Cigna Group is a global health company. The Company has two growth platforms: Evernorth Health Services and Cigna Healthcare. Evernorth Health Services includes its Pharmacy Benefit Services and Specialty and Care Services operating segments, which provide independent and coordinated health solutions and capabilities to enable the healthcare system to work better and help people live richer, healthier lives. Cigna Healthcare includes the U.S. Healthcare and International Health operating segments, which provide comprehensive medical plan services and coordinated solutions to clients and customers. Its Other Operations include corporate-owned life insurance (COLI), the Company's run-off operations and other non-strategic businesses. Specialty and Care Services provides specialty drugs for the treatment of complex and rare diseases, specialty distribution of pharmaceuticals and medical supplies, and clinical programs to help its clients.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Cigna Group to Release Q1 2026 Financial Results on April 30
- Earnings Release Schedule: The Cigna Group will release its Q1 2026 financial results on April 30, 2026, no later than 6:30 a.m. ET, reflecting the company's commitment to transparency.
- Conference Call Details: Management will host a conference call at 8:30 a.m. ET on the same day, with participants encouraged to dial in by 8:15 a.m. ET to ensure timely access to financial information, thereby enhancing investor confidence.
- Replay and Webcast Availability: A replay of the conference call will be available from 12:30 p.m. ET on April 30 until 10:59 p.m. ET on May 14, and the call will also be accessible via a live webcast on the company's website, further improving information accessibility.
- Company Background: The Cigna Group is a global health company focused on improving health through innovative solutions, maintaining over 185 million customer relationships worldwide, showcasing its extensive influence in the global market.
See More
Cigna Group to Release Q1 2026 Financial Results on April 30
- Earnings Release Schedule: The Cigna Group will release its Q1 2026 financial results on April 30, 2026, no later than 6:30 a.m. ET, demonstrating the company's commitment to transparency and timely communication with stakeholders.
- Conference Call Details: Management will host a conference call at 8:30 a.m. ET on the same day, with participants encouraged to dial in by 8:15 a.m., reflecting the company's focus on investor relations and effective information dissemination.
- Replay and Webcast Availability: A replay of the conference call will be accessible from 12:30 p.m. ET on April 30 until 10:59 p.m. ET on May 14, and the call will also be available via live internet webcast, enhancing investor engagement and access to information.
- Investor Relations Information: Cigna Group will provide a news release and financial supplement on its website's Investor Relations section, ensuring investors have timely access to the latest updates, which underscores the company's commitment to transparency and investor communication.
See More
Eli Lilly's GLP-1 Pill Approval Marks New Weight Loss Market Entry
- Regulatory Milestone: The FDA's approval of Eli Lilly's GLP-1 pill, Foundayo, represents a significant advancement for the company in the weight-loss medication market, setting the stage for competition with Novo Nordisk's Wegovy and altering market dynamics.
- Pricing Strategy: Foundayo is priced at $25 per month with insurance or between $149 and $349 out-of-pocket, aiming to attract a broader patient base, particularly appealing to seniors, thereby expanding the market for weight-loss drugs.
- Global Market Expansion: Lilly plans to seek approval for Foundayo in over 40 countries within the next year, leveraging its small molecule nature to enable global production and distribution without cold-chain constraints, enhancing its competitive edge.
- Sales Projections: Analysts estimate Foundayo's sales could reach $14.79 billion by 2030, although lower than Zepbound's $24.68 billion, it still indicates strong market potential and is seen as a key factor for Eli Lilly's stock recovery.
See More
CVS Health Reaches Proposed Settlement with FTC on Insulin Pricing
- Settlement Progress: CVS Health's proposed settlement with the FTC is expected to be finalized in the coming weeks, modeled after a similar agreement with Cigna's Express Scripts, indicating the company's proactive stance on drug pricing transparency.
- Stock Price Reaction: Following the settlement news, CVS Health shares rose 2% on Tuesday, reflecting market optimism about the agreement, with analysts suggesting that this resolution will alleviate uncertainties in the pharmacy benefit management sector, thereby boosting investor confidence.
- Market Outlook: Leerink reiterated an 'Outperform' rating on CVS Health with a $98 price target, suggesting a potential upside of approximately 35% from Tuesday's closing price, indicating a positive market sentiment regarding the company's future performance.
- Cost Reduction for Patients: The settlement with the FTC is expected to lower patients' out-of-pocket costs for insulin and other drugs by up to $7 billion over the next decade, highlighting CVS's strategic importance in advocating for drug price rationalization.
See More
Cigna Foundation Supports Veteran Housing Initiatives
- Funding Support: The Cigna Foundation invested over $3 million across 10 states, enabling 22 nonprofit partners to provide stable housing and integrated support services to 8,000 veterans, significantly improving their quality of life.
- Housing Solutions: By delivering 128 stable housing solutions and 116 housing modifications, nonprofit partners assisted 989 veterans in securing permanent or transitional housing, alleviating mental health stress associated with housing instability.
- Employee Volunteerism: In 2025, over 200 Cigna employees volunteered more than 1,000 hours, engaging in home building and creating care packages, which enhanced community support for veterans and demonstrated corporate social responsibility.
- Long-term Commitment: The Cigna Foundation's three-year, $27 million commitment focuses on improving veteran mental health and housing stability, reflecting the company's dedication to social responsibility and ongoing support for the veteran community.
See More
Cigna Group Foundation Releases Veteran Mental Health Impact Report
- Investment and Impact: The Cigna Group Foundation invested over $3 million across 10 states, supporting 22 nonprofit partners to assist 8,000 veterans in gaining stable housing and integrated support services, significantly improving veterans' quality of life.
- Housing Stability Improvement: By providing 12 new homes and 116 housing modifications, nearly all veterans receiving housing assistance experienced positive life changes, indicating the program's effectiveness in addressing housing instability.
- Employee Volunteerism: In 2025, over 200 employee volunteers contributed more than 1,000 hours to support local nonprofits, showcasing the company's commitment to enhancing veteran mental health through community engagement and social responsibility.
- Long-term Commitment: The Cigna Group Foundation has pledged $27 million over three years to improve veteran mental health, with $9 million specifically allocated to enhancing veterans' mental wellbeing through housing stability, reflecting the company's ongoing dedication to social responsibility.
See More
Cigna Group to Release Q1 2026 Financial Results on April 30
- Earnings Release Schedule: The Cigna Group will release its Q1 2026 financial results on April 30, 2026, no later than 6:30 a.m. ET, reflecting the company's commitment to transparency.
- Conference Call Details: Management will host a conference call at 8:30 a.m. ET on the same day, with participants encouraged to dial in by 8:15 a.m. ET to ensure timely access to financial information, thereby enhancing investor confidence.
- Replay and Webcast Availability: A replay of the conference call will be available from 12:30 p.m. ET on April 30 until 10:59 p.m. ET on May 14, and the call will also be accessible via a live webcast on the company's website, further improving information accessibility.
- Company Background: The Cigna Group is a global health company focused on improving health through innovative solutions, maintaining over 185 million customer relationships worldwide, showcasing its extensive influence in the global market.
See More
Cigna Group to Release Q1 2026 Financial Results on April 30
- Earnings Release Schedule: The Cigna Group will release its Q1 2026 financial results on April 30, 2026, no later than 6:30 a.m. ET, demonstrating the company's commitment to transparency and timely communication with stakeholders.
- Conference Call Details: Management will host a conference call at 8:30 a.m. ET on the same day, with participants encouraged to dial in by 8:15 a.m., reflecting the company's focus on investor relations and effective information dissemination.
- Replay and Webcast Availability: A replay of the conference call will be accessible from 12:30 p.m. ET on April 30 until 10:59 p.m. ET on May 14, and the call will also be available via live internet webcast, enhancing investor engagement and access to information.
- Investor Relations Information: Cigna Group will provide a news release and financial supplement on its website's Investor Relations section, ensuring investors have timely access to the latest updates, which underscores the company's commitment to transparency and investor communication.
See More
Eli Lilly's GLP-1 Pill Approval Marks New Weight Loss Market Entry
- Regulatory Milestone: The FDA's approval of Eli Lilly's GLP-1 pill, Foundayo, represents a significant advancement for the company in the weight-loss medication market, setting the stage for competition with Novo Nordisk's Wegovy and altering market dynamics.
- Pricing Strategy: Foundayo is priced at $25 per month with insurance or between $149 and $349 out-of-pocket, aiming to attract a broader patient base, particularly appealing to seniors, thereby expanding the market for weight-loss drugs.
- Global Market Expansion: Lilly plans to seek approval for Foundayo in over 40 countries within the next year, leveraging its small molecule nature to enable global production and distribution without cold-chain constraints, enhancing its competitive edge.
- Sales Projections: Analysts estimate Foundayo's sales could reach $14.79 billion by 2030, although lower than Zepbound's $24.68 billion, it still indicates strong market potential and is seen as a key factor for Eli Lilly's stock recovery.
See More
CVS Health Reaches Proposed Settlement with FTC on Insulin Pricing
- Settlement Progress: CVS Health's proposed settlement with the FTC is expected to be finalized in the coming weeks, modeled after a similar agreement with Cigna's Express Scripts, indicating the company's proactive stance on drug pricing transparency.
- Stock Price Reaction: Following the settlement news, CVS Health shares rose 2% on Tuesday, reflecting market optimism about the agreement, with analysts suggesting that this resolution will alleviate uncertainties in the pharmacy benefit management sector, thereby boosting investor confidence.
- Market Outlook: Leerink reiterated an 'Outperform' rating on CVS Health with a $98 price target, suggesting a potential upside of approximately 35% from Tuesday's closing price, indicating a positive market sentiment regarding the company's future performance.
- Cost Reduction for Patients: The settlement with the FTC is expected to lower patients' out-of-pocket costs for insulin and other drugs by up to $7 billion over the next decade, highlighting CVS's strategic importance in advocating for drug price rationalization.
See More
Cigna Foundation Supports Veteran Housing Initiatives
- Funding Support: The Cigna Foundation invested over $3 million across 10 states, enabling 22 nonprofit partners to provide stable housing and integrated support services to 8,000 veterans, significantly improving their quality of life.
- Housing Solutions: By delivering 128 stable housing solutions and 116 housing modifications, nonprofit partners assisted 989 veterans in securing permanent or transitional housing, alleviating mental health stress associated with housing instability.
- Employee Volunteerism: In 2025, over 200 Cigna employees volunteered more than 1,000 hours, engaging in home building and creating care packages, which enhanced community support for veterans and demonstrated corporate social responsibility.
- Long-term Commitment: The Cigna Foundation's three-year, $27 million commitment focuses on improving veteran mental health and housing stability, reflecting the company's dedication to social responsibility and ongoing support for the veteran community.
See More
Cigna Group Foundation Releases Veteran Mental Health Impact Report
- Investment and Impact: The Cigna Group Foundation invested over $3 million across 10 states, supporting 22 nonprofit partners to assist 8,000 veterans in gaining stable housing and integrated support services, significantly improving veterans' quality of life.
- Housing Stability Improvement: By providing 12 new homes and 116 housing modifications, nearly all veterans receiving housing assistance experienced positive life changes, indicating the program's effectiveness in addressing housing instability.
- Employee Volunteerism: In 2025, over 200 employee volunteers contributed more than 1,000 hours to support local nonprofits, showcasing the company's commitment to enhancing veteran mental health through community engagement and social responsibility.
- Long-term Commitment: The Cigna Group Foundation has pledged $27 million over three years to improve veteran mental health, with $9 million specifically allocated to enhancing veterans' mental wellbeing through housing stability, reflecting the company's ongoing dedication to social responsibility.
See More
