Cigna has acquired CarepathRx, a large pharmacy backed by private equity that dispenses prescription drugs to nearly 10% of U.S. hospitals.
The acquisition, discovered by STAT in a review of Cigna’s financial filings, reinforces the company’s push to control more of the lucrative flow of pharmaceuticals through the U.S. health care system. Cigna executives have repeatedly told investors that managing prescription drugs has been one of their highest priorities since the company acquired Express Scripts for $54 billion in 2018.
It’s also the latest example of health insurers expanding well outside of their core business, a strategy known as “vertical integration” that has defined the industry over the past two decades. As a result, fewer companies now control more parts of the health care system, a shift that has drawn the ire of antitrust officials who worry the consolidation is harming consumers and making health care more expensive.
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