The Cigna Group’s Evernorth recently shared plans for a rebate-free pharmacy benefit model. The move could simplify drug pricing, but leaders on Cigna’s Oct. 30 earnings call warned of some potential growing pains while adjusting to the change.
“Our new rebate-free pharmacy benefit model will incur short-term investment and transition costs, including for technology and operational reconfiguration as we accelerate transformative change,” Cigna President and COO Brian Evanko said.
Not only will these investments affect 2026, but Mr. Evanko said Evernorth anticipates “meaningful cost” into 2027.
The transition will not be the only headwind next year. Company leaders also addressed how big client renewals and extensions could lead to margin compression.
Despite these challenges, Cigna CEO and Chairman David Cordani emphasized the company plans to grow earnings per share in 2026, and Cigna is standing by its decision to axe rebates.
“We’re proactively bringing market-leading innovations, such as our new rebate-free, delinked, fee-based pharmacy benefit model, that will deliver more value to customers and clients and simplify our economic model,” Mr. Evanko said.
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