Evernorth Unveils Rebate-Free Pharmacy Benefit to Cut Drug Costs

Evernorth, the health services division of The Cigna Group, has introduced a new pharmacy benefit model aimed at lowering the cost of medications for millions of Americans while improving transparency and strengthening support for local pharmacies. The program eliminates the traditional rebate structure, ensuring negotiated discounts are passed directly to patients at the point of sale.

“Americans deserve clear, upfront pricing for essential medicines,” said David M. Cordani, Chairman and CEO of The Cigna Group. “We are building on decades of innovation to lower their drug costs, protect access to trusted pharmacies, and provide the clinical support needed to stay healthy.”

A Transparent, Upfront Pricing Model

Instead of relying on retroactive rebates, Evernorth’s Express Scripts services will make discounted prices available immediately at the pharmacy counter. For people with high-deductible plans often paying the full cost of prescriptions this shift is expected to reduce spending on brand-name medicines by an average of 30%.

Employers and health plans will also gain accurate real-time visibility into drug pricing, improving budget planning and population health support.

“In this new era of pharmacy benefits, lowering brand-name costs and accelerating adoption of generics and biosimilars go hand in hand,” said Adam Kautzner, PharmD, President of Evernorth Care Management and Express Scripts. “This model is a win-win lower costs for Americans and renewed trust in pharmacy benefits.”

Cigna Healthcare will adopt the model for all fully insured plans beginning in 2027. It will be available to all Evernorth pharmacy benefit clients in 2028.

Technology That Always Finds the Lowest Price

Evernorth’s platform automatically compares the negotiated drug price, copays, cash discounts, and direct-to-consumer pricing charging whichever is lowest. Out-of-pocket spending will continue to count toward deductibles while maintaining robust clinical safeguards to prevent harmful interactions and support treatment adherence.

Local Pharmacies Remain Central to Care

Beginning in 2026, pharmacies in Evernorth’s network will transition to a reimbursement structure tied to medication costs plus a dispensing fee and additional compensation for clinical services. The goal is to enable pharmacies to deliver high-quality patient care while remaining financially sustainable.

This new model continues Evernorth’s long-standing mission to improve affordability and ensure that medications and care remain accessible within every community.