CVS, Cigna fall after Trump administration proposes rule to lower drug prices

The Trump administration announced Thursday it plans to target "backdoor rebates" as it seeks to lower drug costs for consumers.

The Department of Health and Human Services said the proposal would address a "perverse incentive" related to rebates on prescription drugs paid by manufacturers and explicitly exclude those from the safe harbor definition of a "discount." Instead, the department said the proposal would create a new safe harbor for discounts made available to patients at the pharmacy counter.

Shares of health stocks slipped in after-hours trade following the announcement. CVS Health and Cigna fell 3 percent, while Cardinal Health slipped 2 percent. Walgreens Boots Alliance and UnitedHealth also dipped about 1 percent.

This story is developing. Please check back for updates.

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