Rite Aid's Bankruptcy Sequel, Insurers Facing Headwinds, MAHA Food Experts

Hi all,

Happy hump day! As I see Rite Aid file for bankruptcy and Walgreens sell for a fraction of its own value, I’m reminded of how much the pharmacy business model has atrophied. It opens up an opportunity for hospitals to bring more dispensing in-house and improve collaboration with prescribers to improve patient outcomes and improve pharmacy economics. Enjoy the rundown!

Jacob Brody (Co-Founder & CEO, ZorroRX)

(FOX Business) Rite Aid Files for Bankruptcy Again 

Rite Aid has filed for Chapter 11 bankruptcy for the second time in less than two years, aiming to sell off most of its assets while managing \$2.5 billion in debt and mounting legal challenges. This latest filing highlights the brutal realities facing traditional pharmacies amid inflation, shrinking store footprints, and fierce competition from larger chains like CVS and Amazon. Apparently, years of mismanagement, bad decisions, and ignoring a mountain of opioid lawsuits finally caught up with Rite Aid — and unfortunately, there’s no copay assistance for corporate debtors. [Full Article]

(Fierce Healthcare) Q1 2025 Major Insurer Earnings Report 

Elevated medical costs, especially in Medicare Advantage, pressured all six major U.S. insurers in Q1 2025 despite each turning a profit. UnitedHealth Group led with $109.6B in revenue and $6.3B in profit but still missed analyst expectations due to higher utilization and reimbursement challenges, while Elevance Health ($48.9B revenue, $2.2B profit) and CVS Health ($94.6B revenue, $1.8B profit) faced similar headwinds, particularly in their MA and Medicaid lines. Humana ($32.1B revenue, $1.2B profit), Cigna ($65.5B revenue, $1.3B profit), and Centene ($46.6B revenue, $1.3B profit) navigated rising costs with strategies like divestitures, market exits, and benefit design adjustments. With government business lines facing headwinds and PBMs facing scrutiny, insurers are running out of ways to extract value from the US healthcare system. Full Article

(STAT) Dietary Guidelines Get an RFK Jr. MAHA Makeover — Five Experts to Watch

As Robert F. Kennedy Jr.’s Make America Healthy Again (MAHA) movement rapidly advances food policy reforms, five experts—Marion Nestle, Dariush Mozaffarian, Susan Mayne, Eric Schulze, and Jerold Mande—emerge as key figures for interpreting how these changes could impact U.S. dietary guidelines and chronic disease prevention. Their combined expertise in nutrition science, regulatory affairs, and food industry dynamics helps clarify both the promise and pitfalls of MAHA’s push to overhaul the nation’s food system and public health landscape.   Full Article