UnitedHealth and Humana Mail-Order Pharmacies Tied to Higher Medicare Refill Costs

An analysis by The Wall Street Journal reveals that mail-order pharmacies, particularly those operated by UnitedHealth and Humana, contributed to $3 billion in extra Medicare costs from 2021 to 2023. These pharmacies accounted for 37% of excess medication dispensing despite filling only 9% of prescriptions. UnitedHealth's early refills were nearly nine times more frequent than other pharmacies, leading to significant excess costs. Both companies have since tightened controls post-pandemic. Analysts favor UnitedHealth stock over Humana, with a higher potential upside.