New proposed federal legislation co-sponsored by Senator Elizabeth Warren and Senator Josh Hawley aims to require healthcare companies with pharmacy benefit managers (PBMs) to divest from those businesses — making it illegal for "any person to directly or indirectly own" both an insurance company and a PBM.

Pharmacy Benefit Managers (PBMs) are intermediaries meant to negotiate drug discounts with pharmaceutical companies, securing favorable placement on formularies — the lists that guide patients' medication choices after a diagnosis.

Yahoo Finance Senior Health Reporter Anjalee Khemlani explores how PBMs have impacted independent pharmacies and the current state of the broader healthcare industry.

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This post was written by Angel Smith