Centene will contract with Cigna’s Express Scripts to manage its $40 billion in pharmacy spending in 2024, the companies announced Tuesday.
“We’re feeling good about moving forward with the core services and ability to expand the relationship if that makes sense,” Centene CEO Sarah London said during the health insurer's third-quarter earnings call with investors.
Centene and Express Scripts did not disclose the contract's length or economic terms. Cigna subsidiary Express Scripts will cover much of the costs from CVS Health’s Caremark, which manages nearly all of the insurer's pharmacy services, to the new pharmacy benefit manager, Centene Chief Financial Officer Drew Asher said during the call.
Centene announced last October it was in the market for a new PBM. The company transitioned from its in-house PBM, Envolve Health Solutions, to a third-party after multiple states alleged Centene overcharged Medicaid for prescription drugs.
The nation’s largest Medicaid insurer has paid more than $553 million to settle fraud charges from 11 states. Centene has reserved a total of $1.25 billion to resolve allegations of improper charges related to Envolve.
The company exited the pharmacy benefit management business when it sold MagellanRx and PANTHERx in separate transactions collectively valued at $2.8 billion this year.