Insurers Aim to Hinder Employers’ Use of Alternate Drug Plans

Health insurers are blocking some employers from separating their pharmacy benefits from other medical coverage, a move that insurance brokers say is an obstacle to cutting drug costs.

Major Merger Effects: Aetna and Cigna recently merged with CVS Health and Express Scripts, respectively, two of the biggest pharmacy benefit management services in the U.S. But companies that self-ensure their employee health plans often choose to use a PBM that isn’t part of the insurer-administered plan.

Bottom-Line Impact: Smaller employers that can choose their PBM can save substantially on drug benefits. Rising costs for specialty drugs especially “are killing us all,” ...