"CVS Stock Plummets as Blue Shield of California Shakes Up Partnership"
CVS and other healthcare stocks experienced a significant drop in market value after Blue Shield of California announced a shake-up in its pharmacy benefits manager (PBM) services. However, analysts believe the market's reaction was exaggerated and nonsensical. Blue Shield plans to unbundle its PBM service and distribute portions to disruptors like Cost Plus Drugs and Amazon Pharmacy, aiming to save $500 million annually on medications. CVS will retain the specialty pharmacy segment, which is the most profitable. Analysts highlight the value of legacy PBMs and the limitations of newer models, emphasizing that the announcement does not spell doom for CVS and other major PBMs.