Update to Cigna Pharmacy’s Manufacturer Contracting Approach
We are writing today to provide you with an update to Cigna’s pharmaceutical rebate manufacturing arrangements.
As you are aware, in December 2018, Cigna acquired Express Scripts, and one of the first opportunities to leverage Express Scripts’ capabilities involves their pharmaceutical manufacturer agreements. We are pleased to announce that Cigna has begun using Express Scripts for pharmaceutical manufacturer revenue contracting services starting January 1, 2019.*
What this means to you
There will be no changes to the contractual terms and conditions of your current agreement with Cigna as a result of Cigna’s new arrangement with Express Scripts. However, while not contractually obligated to do so, Cigna will now include, where applicable, Manufacturer Administrative Fees for those employer groups that participate in a plan option for which there is a percentage-based rebate sharing arrangement between Cigna and the third party administrator.
We are excited about the opportunities the acquisition of Express Scripts will bring to Cigna Pharmacy clients and customers, and our ability to enhance value. Please contact your Business Development Lead or me with any questions.
Thank you,
Francine Taylor, R.Ph. MBA
Market Manager, Payer Segment
Cigna Pharmacy Management
Office: 860-902-4916
Cell: 614-981-5209
*Through its arrangement with Express Scripts, Cigna will earn different types of manufacturer revenue. Some of that revenue can be described generally by the term rebates. Manufacturer rebate payments primarily include rebates that represent a discount off of the drug’s list price, and inflation protection payments that are paid when, for example, the list price for the manufacturer’s drug increases. Cigna’s new contracting arrangement with Express Scripts, will also include Manufacturer Administrative Fees (MAF). Manufacturer Administrative Fees are fees Cigna will now earn from a manufacturer for rebate billing administration and other services provided by Express Scripts to the manufacturer.
