Cigna’s Evernorth announces rebate-free pharmacy benefit model

Evernorth, the health services division of The Cigna (CI) Group, earlier announced a new rebate-free pharmacy benefit model it says is designed to help Americans stay healthy and get the medications they need by lowering costs, improving transparency, and supporting local pharmacies so care is always within reach. “While pharmacy benefit managers have already helped the U.S. achieve the lowest prices for generics in the world – which account for 90% of all prescriptions – the cost of brand-name medicines remain out of reach for too many Americans. We applaud President Trump and his Administration for taking decisive action to help lower costs for brand-name medicines that have long been controlled by drug companies,” said David M. Cordani, Chairman and CEO, The Cigna Group. “We are building on our long track record of pharmacy benefits innovation to put Americans first – lowering their drug costs, protecting access to their trusted pharmacies, and providing the clinical support and safety checks they need to stay healthy.” Evernorth will transition toward a new model where discounts negotiated with drug companies are available upfront to Americans buying their medications. This new approach will cut out the complex post-purchase rebate process by making the discounted price of the drug readily available and transparent from the start. Cigna Healthcare will adopt this model for its fully insured lives beginning in 2027. It will become the standard model available for all Evernorth pharmacy benefits clients beginning in 2028. The new reimbursement model will be implemented across all in-network pharmacies starting in 2026. Shares of Cigna are down 3.3% in pre-market trading.