Cigna Will Scrub Drug Rebate Models From Some Plans Starting In 2027
As Bloomberg explains, pharmaceutical companies pay the rebates in order to get favorable placement on pharmacy benefit managers’ lists of covered drugs, a practice some have likened to kickbacks. All of Cigna's Evernorth customers will have access to upfront discounts starting in 2028.
Bloomberg:
Cigna Will End Drug Rebates In Many Private Health Plans
Cigna Group will eliminate prescription drug rebates in many of its commercial health plans in 2027, upending an opaque, controversial practice that’s drawn the ire of President Donald Trump. The insurer will expand the rebate-free model to clients of its pharmacy benefits business starting in 2028. The plan to eventually phase out rebates more broadly portends a seismic shift in the flow of billions of dollars among drugmakers, insurers and employers. (Tozzi, 10/27)
More on the high cost of health care —
MedPage Today:
Medicare To Spend $15B On Treatment Linked To Fraud, Patient Harm
Medicare is expected to spend more than $15 billion by year's end on pricey wound care products linked to waste, fraud, and abuse, according to an analysis of data by the National Association of ACOs (NAACOS) and the Institute for Accountable Care. Spending on skin substitutes climbed to $7.7 billion through July, and is projected to reach as much as $15.4 billion by the end of 2025 -- 55% more than was spent in 2024, the groups said. (Firth, 10/27)
Modern Healthcare:
CVS Health To Close 16 Oak Street Health Clinics
CVS Health plans to close 16 Oak Street Health sites by the end of February due to financial challenges, including higher medical costs. The company, which is in the midst of a $2 billion cost-cutting strategy, said Monday it will continue to operate 230 centers across 27 states following the closures. “The move positions Oak Street Health for sustainable, long-term growth as we continue to navigate external challenges, such as elevated medical costs, [Centers for Medicare and Medicaid Services] risk adjustment model changes, and health plan payer dynamics,” CVS Health said in a statement. (DeSilva, 10/27)
Mississippi Today:
Leader Of Greenwood Hospital Says Dispute With Mississippi Medicaid Could Lead To Reduced Services
Greenwood Leflore Hospital, plagued by financial hardship for years, saw a bright spot this spring when it was selected for a new federal payment status. But a dispute with Mississippi Medicaid could jeopardize the Greenwood public hospital’s ability to keep services open if a resolution is not reached, its leader says. “Access to services will be reduced for residents of the central Delta region,” Interim CEO Gary Marchand told Mississippi Today. He said no decisions about service changes have been made yet. (Dilworth, 10/27)
The Hill:
Many Voters Say Health Care Unaffordable, Are Open To New Insurance System: Poll
New polling has found that the majority of voters say health care in the U.S. is unaffordable and are open to a health insurance system that doesn’t tie coverage to employment. Undue Medical Debt, a nonprofit that works to eliminate medical debt and supports policies to prevent new debt, sponsored the poll, which was led by the nonpartisan research firm PerryUndem. Along with a national survey, focus groups were also asked for their opinions on health care. (Choi, 10/27)
Fierce Healthcare:
Patients Are Blaming Insurers For Medical Debt: Survey
U.S. consumers across the political spectrum are largely in favor of new legal protections against medical debt, and the majority are laying blame at the feet of the insurance industry rather than other healthcare players like hospitals or drugmakers, according to a new national survey. The poll of 1,319 2024 general election voters, fielded between Aug. 21 and Sept. 2, 2025, found about 35% currently owed money or have debts due to medical and dental expenses. Eighty-four percent said they believed having health insurance should protect people from medical debt, and 74% said the country’s current health insurance system is “mostly failing” in protecting from medical debt. (Muoio, 10/27)
KFF Health News:
KFF Health News’ ‘An Arm and a Leg’: A Listener's DIY Project Helps Others Deal With High Medical Bills
In April, Thomas Sanford, a medical student who regularly listens to “An Arm and a Leg,” set out to create a resource he could easily share with patients to help them deal with unaffordable medical bills. In this mini-episode, host Dan Weissmann talks with Sanford about how handing out charity care information on tiny cards snowballed into an ever-growing list of resources to erase medical debt. They discuss the inspiration behind his project, the role “An Arm and a Leg” listeners played in building it, and how others can contribute. (Weissmann, 10/28)
