Morningstar

Cigna's Evernorth to Scrap Drug Rebate Model for Upfront Discounts

Provided by Dow Jones Oct 27, 2025, 11:03:00 AM

By Adriano Marchese

Cigna Group is launching a new rebate-free pharmacy benefit model which aims to bring down drug costs and simplify the payment process.

Through its subsidiary Evernorth Health Services, a health services and benefits company, Cigna said on Monday that the new approach will cut out the post-purchase rebate process by making the discounted price of the drug available from the start.

Cigna said that Evernorth will transition to a new model where discounts negotiated beforehand with drug companies will be available upfront to Americans buying medications.

Cigna Healthcare will adopt this model for its fully insured lives beginning in 2027 and the model will become the standard model available to all Evernorth pharmacy benefits clients beginning in 2028.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

October 27, 2025 07:03 ET (11:03 GMT)

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