Cigna Group announced plans to eliminate prescription drug rebates across many of its commercial health plans starting in 2027. Instead, the insurer will provide upfront discounts at pharmacy counters to help patients save on medication costs.
This shift will phase out the current post-purchase rebate system managed by pharmacy benefit managers (PBMs), often criticized for adding hidden costs and complexity to drug pricing. The new model is expected to lower the monthly cost of brand-name prescriptions by an average of 30% for patients who pay the full price, including those on high-deductible plans.
Cigna also plans to roll out a revised reimbursement framework across all in-network pharmacies in 2026, which will base payments on the patient’s out-of-pocket cost, a dispensing fee, and additional reimbursements.
The move aligns with broader efforts in the U.S. to increase transparency and bring down drug prices by reducing the role of intermediaries in the pharmaceutical supply chain.