Cigna Merger with Express Script for $67 Billion


Cigna Merger with Express Script for $67 Billion

Shaking things up in the health industry, Cigna, the health insurer, acquired Express Scripts for close to $67 billion. Due to similar announcements like the CVS-Aetna merger and the Amazon, Chase, and Berkshire team-up, Cigna hopes to stay on top. Each company hopes to cut deals to lower costs and benefit consumers. The real question is who can follow through on the promises. With Cigna’s acquisition, there is a very high chance that customers could see benefits throughout the year. Today, we will cover what the potential outcome of the Cigna merger could bring to customers.

Who Is Express Scripts?

First, It’s important to understand what Cigna bought to understand the benefit possibilities. Express Scripts is a pharmacy benefits provider with other medical services. Express Scripts is also the largest pharmacy benefit management in the United States. Scripts provide integrated pharmacy benefit management services, including network-pharmacy claims processing, home delivery pharmacy care, specialty pharmacy care, and more. The deal alone is expected to benefit both parties while creating a dominating player in the sale of drugs and insurance coverage.

Benefits for Cigna and consumers

Cigna will benefit from the merger with the ability to now negotiate with drug manufacturers and pharmacies better, which will in return lower costs of prescription drugs. That means this saved money will eventually roll down to the consumer, with lower premiums or even more options for plans. Since Express Scripts is such a high-ranking PBM, the chances that drug costs will be cut for Cigna consumers are very likely. This merger will also give Cigna a chance against the ever-growing healthcare mergers in recent months. CEO David Cordani says the deal allows Cigna to “accelerate the much-needed change from sick care interventions to health care.”

Cigna consumers will want to check back to view updates on how this merger will affect them. Get in contact with your agent for more information on possible changes. For more information on Cigna’s acquisition, click here.

Have Health Insurance Questions?

We hope that this information on Cigna’s merger was helpful to you.

Insurance is oftentimes overwhelming, and we want to shed light on the industry by answering your questions. Comment below and your question may be the topic of our next post!

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