The Cigna Group’s Evernorth division introduced a rebate-free pharmacy benefit model that it says will lower medication costs and simplify drug pricing.
The model removes the traditional post-purchase rebate structure by applying negotiated drug discounts upfront, according to an Oct. 27 news release. Patients will pay the lowest available cost — whether it’s Evernorth’s negotiated rate, a copay, cash price or a direct-to-consumer offer. For example, if a medication is priced at $22 under Evernorth’s discount, but has a $20 cash price, patients would pay $20.
Evernorth, the health services arm of Cigna, said the approach could reduce monthly brand-name prescription costs by an average of 30% for people with high-deductible plans. The company’s pricing tool currently benefits tens of millions of Americans and is set to expand further in January 2026.
Cigna will implement the model for fully insured members in 2027. It will become the standard for all Evernorth pharmacy benefit clients beginning in 2028.
As part of the shift, Evernorth will also update reimbursement for in-network pharmacies in 2026 to cover medication costs, dispensing fees and performance-based clinical incentives.
