Cigna-Humana Deal Would Complicate Drug Pricing for Health Plans

Employer groups are warily eyeing a possible merger between Cigna Group and Humana Inc. that would set up the industry for less competition among pharmacy benefit managers and raise the specter of higher costs for company health plans.

In 2022 Cigna commanded about 24% of the PBM market through its Evernorth and Express Scripts businesses, making it the second largest PBM in the US, while Humana Pharmacy Solutions, the in-house PBM operated by Humana, is the fourth largest with 8% of the market, according to Drug Channels Institute, which researches pharmaceutical economics and the drug distribution system.

The deal could ...