Cigna chief executive David Cordani said
partnerships like its decision to sell new health plans with Oscar Health and
its alliance with the pharmacy benefit manager Prime Therapeutics will escalate
in 2020.
Cigna, which has owned the pharmacy benefit
manager Express Scripts for more than a year now, believes it has more to offer
partners as it works to package an array of medical, pharmacy and behavioral
benefits for government health programs, large and small employers.
“A key point of differentiation and a growth
driver for Cigna in 2020 and beyond is our orientation toward partnering,”
Cordani told analysts Thursday morning on a call to discuss the company’s
fourth quarter 2019 earnings.
Last month, Cigna and Oscar, perhaps best
known for selling individual coverage known as Obamacare under the Affordable
Care Act, said they will begin sales of commercial health insurance plans for
small businesses in four yet-to-be disclosed U.S. markets.
And in December, Cigna’s Express Scripts PBM and Prime
Therapeutics, which is owned by 18 Blue Cross and Blue Shield
plans, have joined forces to tame drug costs for their existing clients as well
as new business they hope to attract.
“Starting in April 2020, together we will make
pharmacy care more affordable by enhancing pharmacy networks and pharmaceutical
manufacturer value for Prime’s 28 million members,” Cordani told analysts.
“Together, Express Scripts and Prime will help each other to continue to grow
in markets across the country.”
Express Scripts and Prime in December said
their new three-year collaboration is “designed to deliver more affordable care
for clients and their members by enhancing pharmacy networks and pharmaceutical
manufacturer value.” The collaboration will allow Prime’s member Blue Cross
health plans to gain leverage through Express Scripts’ buying clout and large
pharmacy network in an increasingly competitive business.
All major health insurers now operate PBMs.
United Health Group owns the OptumRx PBM; Anthem is rolling out its new
IngenioRx PBM; CVS Health, which owns the Caremark PBM, bought health insurance
giant Aetna last year; and Humana has for years owned and operated its own PBM.
Under Cigna, Express Scripts is already
projected to continue to grow in 2020 boosted in part by business growth that
includes a high rate of retention of 97% for Express Scripts PBM customers,
Cordani said Thursday.
Cigna’s total revenue eclipsed $38 billion in the fourth
quarter while net income jumped to $977 million, or $2.60 per
share as the company benefits from the addition of the PBM Express Scripts,
which the health insurer acquired in December of 2018.
For 2019, Cigna’s total revenue surpassed $153
billion. Net income nearly doubled to $5.1 billion, or $13.44 per share,
compared with $2.6 billion, or $10.54 per share in 2018.
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