Cigna’s Express Scripts to transition away from rebate drug model

Dive Brief:

One of the largest pharmacy benefits managers in the U.S. is overhauling how millions of its commercial members pay for drugs, in a move that should save consumers money at the pharmacy counter while insulating it from regulatory reform — all without affecting long-term profits.

On Monday, Evernorth — Cigna’s health services division that includes major PBM Express Scripts — announced it plans to transition its commercial clients to a benefits model that will pass the savings it negotiates with drugmakers onto members at the point of sale. As a result, Express Scripts will no longer retain rebates for those clients, eliminating a key grievance of PBM critics.

Evernorth also said it will start reimbursing pharmacies in a cost-plus model, following in the footsteps of other