Cigna commercial business de-risked with new model, says JPMorgan

JPMorgan keeps an Overweight rating on Cigna (CI) after the company’s Evernorth unit announced a new model for Express Scripts commercial customers starting in 2027, eliminating rebates and moving towards a point-of-sale model where customers pay a net price at the point of dispensing. The new model responds to many of the regulatory proposals over recent years and should “de-risk” Express Scripts’ commercial business, the analyst tells investors in a research note. JPMorgan believes Cigna’s shifting its default offering to a de-linked and rebate model is a “clear signal that it views this as a viable approach for the broader business.”