The Cigna Group's Evernorth unit will eliminate prescription drug rebates in many of its commercial health plans starting in 2027. This strategic shift involves launching a new rebate-free pharmacy benefit model designed to bring down drug costs directly at the pharmacy counter for patients.
This move is a proactive response to the ongoing public and political scrutiny surrounding the Pharmacy Benefit Manager (PBM) industry and the traditional rebate system. By transitioning to upfront discounts, Evernorth aims to enhance transparency and ensure that patients and plan sponsors directly benefit from lower drug prices.
The new model is expected to simplify the drug pricing structure and potentially improve affordability for many members. This significant change in business practice could differentiate Evernorth in the competitive PBM landscape and address concerns about the complexity and perceived lack of transparency in current drug pricing mechanisms.
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