Comment by lotsofpulp

>It's not actually clear from the report that the PBMs actually profited from overcharging.

Even if they did profit, it is clear from their 10-Q and 10-K that the managed care organizations (MCO) did not tremendously profit.

https://www.macrotrends.net/stocks/charts/UNH/unitedhealth-g...

This kind of profit margin (<6%) would get executives in many other businesses fired. All the other MCOs actually have a sub 3% profit margin. UNH has a higher profit margin because it sells healthcare, not just managed care.

On the other hand, here are the profit margins for the companies that make medicine (20%+):

https://www.macrotrends.net/stocks/charts/LLY/eli-lilly/prof...

https://www.macrotrends.net/stocks/charts/NVO/novo-nordisk/p...

https://www.macrotrends.net/stocks/charts/NVS/novartis-ag/pr...

https://www.macrotrends.net/stocks/charts/PFE/pfizer/profit-...

https://www.macrotrends.net/stocks/charts/MRK/merck/profit-m...

Finally, search for the difference in rankings in market cap between pharmaceutical companies versus managed care organizations. There are at least 7 pharmaceutical companies in the top 100, and only 1 managed care organization. The next biggest MCO is #189.

https://companiesmarketcap.com

Edit to respond to below: It does not matter if UNH or any other MCO moves money from their right pocket to their left pocket, the SEC filed 10-Q and 10-K will reflect all revenue and expenses. Their low profit margin is evidence that the money is flowing out of the organization and away from the shareholders. If this business was as profitable as people claim, then its stock returns would indicate it, but they don't.