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Oct. 30, 2025, 2:14 p.m.
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Cigna's Express Scripts Faces Lower Profit Margins Amid Reduced Drug Rebates

Cigna anticipates that its pharmacy benefit manager, Express Scripts, will generate lower profit margins for the next two years as it moves away from relying on drug rebates.



Brief news summary

Cigna anticipates that its pharmacy benefit manager, Express Scripts, will experience reduced profit margins over the next two years due to a strategic shift away from relying on drug rebates. This change reflects a broader industry trend focusing on transparency and value-based pricing rather than traditional rebate-driven revenue models. While this transition may temporarily impact Express Scripts’ profitability, Cigna aims to enhance long-term sustainability and align more closely with healthcare providers and patients by promoting cost-effective medication access. The move is expected to foster stronger partnerships and potentially drive innovation in managing pharmacy benefits, ultimately benefiting the overall healthcare ecosystem despite short-term margin contractions.

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