David Cordani doesn't view Cigna as merely a health insurer. The Bloomfield, Conn.-based company, he said, is in the business of delivering "health services." The proposed $54 billion purchase of Express Scripts falls in line with that, he argued.
A new filing with the Securities and Exchange Commission shows why Cigna and Express Scripts decided to join forces in the wake of their breakups with health insurer Anthem.
The administration's proposal, coined American Patients First, recommended bolstering competition, allowing private plans to negotiate discounts for Medicare beneficiaries, creating incentives to lower list prices and reducing consumers' out-of-pocket spending.
Brian Griffin, the CEO of Anthem's new in-house pharmacy benefit manager, IngenioRx, has resigned to head up Diplomat Pharmacy, a specialty pharmacy services provider.
FDA Commissioner Dr. Scott Gottlieb said tweaking drug rebate laws that favor pharmacy benefit managers could be key to reducing drug prices.
A recently unsealed False Claims Act lawsuit filed in 2014 accuses CVS Health, through its pharmacy benefits manager unit, of getting lower prices on drugs with its pharmacies and failing to pass those savings on to Medicare Part D.
CVS Health and Aetna shareholders signed off on the proposed $69 billion merger of the two healthcare companies, which is expected to close in the second half of this year. Now they await the federal government's approval.
The deal between Centene and RxAdvance is the latest example of insurers buying or investing in PBMs to gain more control over pharmaceutical costs.
The $67 billion merger would allow Cigna to lower its costs by insourcing PBM services, and absorb the profits of the biggest stand-alone PBM at a time when its competitors are also pairing up with providers of pharmacy services.
Supply chain experts are skeptical the $67 billion Cigna Corp.-Express Scripts deal will do much to transform the healthcare industry, let alone deliver any significant savings to customers.
CVS Health's fourth-quarter earnings nearly doubled, fueled by a $1.5 billion tax benefit that will help the drugstore chain expand its growing role in customer care. It plans on pumping more money into data analytics to help track prescription drug use and monitor patients' blood tests.
Aetna will operate as a stand-alone unit within CVS and will be run by the insurer's current management team. The deal would create a healthcare giant with more than $240 billion in annual revenue.