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Cigna Group will eliminate prescription drug rebates in many of its commercial health plans in 2027, upending an opaque, controversial practice that’s drawn the ire of President Donald Trump.
The insurer will expand the rebate-free model to clients of its pharmacy benefits business starting in 2028. The plan to eventually phase out rebates more broadly portends a seismic shift in the flow of billions of dollars among drugmakers, insurers and employers.
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Collaboration between employers, brokers and third-party administrators will be essential to developing customized, cost-effective and employee-friendly solutions.
As GLP-1 spending climbs, employers are asking whether the drugs deliver enough value. Better data could help them measure the payoff more accurately.
The legislation calls on Congress to lower prescription drug costs, shift subsidies directly to consumers, and enforce strict price transparency.
Employers are under pressure to keep benefits competitive while controlling costs, driving new scrutiny of PBMs, hospital prices and GLP-1 coverage for 2027.
Multiple experts weigh in on the challenges and considerations benefit leaders need to keep in mind as they make decisions about medication coverage.
