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

By Adriano Marchese

Cigna Group is launching a new rebate-free pharmacy benefit model which aims to bring down drug costs directly at the counter.

The new approach will cut out the post-purchase rebate process by making the discounted price of the drug available from the start where instead of getting a secret rebate on the back end, they are moving the discount to the front end.

The new model will be offered through Evernorth Healthcare Services, and is also to reduce monthly cost for a brand-name prescription by an average of 30%.

Typically, under the previous system, a customer's copay was based on a high list price set by the drug company, while pharmacy benefit managers like Evernorth negotiated a rebate that was paid back after.

Evernorth said the move is in response to the Trump administration's initiatives to fix the complex and high-cost drug pricing system in the U.S.

Starting in January 2026, it will also begin using technology to automatically compare various pricing options for medication and offer the lowest cost at the pharmacy counter.

It is also launching a new reimbursement model for community pharmacies that will pay them for the cost of the drug and a dispensing fee as well as any extra reimbursement for clinical services.

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

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

(END) Dow Jones Newswires

October 27, 2025 07:34 ET (11:34 GMT)