As recently reported in Crain’s, Cigna Inc. has announced a $54 billion purchase of pharmacy benefit management provider Express Scripts Holding Co. Inc. One factor in the decision is that Express Scripts will lose its largest client, Anthem Inc., in 2020. The PBM business has come under fire in recent years for its role in rising drug prices. The hope is that as part of a larger health-care entity, Express Scripts won’t face as much pressure to squeeze profit from every drug claim and will likely be more insulated from public scorn. Adding Express Scripts’ scale will likely make Cigna’s insurance business more competitive—helping it lower costs for clients and offer a wider suite of services—while diversifying its revenue.
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