Express Scripts' 'Parachute' to cap prescription costs for those hit by coronavirus turmoil

Cigna’s Express Scripts is offering a new prescription drug program that limits costs to consumers, acting as a safety net for millions of newly uninsured individuals. Yahoo Finance’s Anjalee Khemlani joins Seana Smith to discuss.

Video Transcript

SEANA SMITH: Well, sticking with the coronavirus and what some companies are doing in the wake of the outbreak, we have Cigna's Express Scripts, the company offering discounts to customers hit by the pandemic. The pharmacy benefit manager unveiling Parachute Rx today for the unemployed or uninsured. We have Anjalee Khemlani looking into this story for us. And Anjalee, what can you tell us, just in terms of how big of a discount is being offered?

ANJALEE KHEMLANI: Yeah, Seana, so it's a really interesting program that they've developed, and it's open to anybody. It doesn't have to be a former Cigna member. And it's capping costs for generic drugs at $25 per 30-day supply and $75 for some brand drugs that-- for the 30-day supply. And this is-- you know, really, we've seen and we've talked about how Express Scripts-- the broad reach that they have and how large of a company they are. So they're really leveraging these partnerships that they have to bring this around.

And we had a discussion with the president of Cigna Services earlier today talking about why make this move, and it's really about so many people have, you know, hit the unemployment mark. We've seen the numbers just today, another 3.1 million claiming unemployment. So it seems like the idea is to build up that brand awareness almost at a time like this.

SEANA SMITH: Anjalee, do you think we could see other names within the sector here kind of follow Cigna's Express Scripts in their footsteps?

ANJALEE KHEMLANI: Could be or something similar, we've been seeing that sort of follow through throughout this outbreak, as much as one person or one insurer will start. We've seen that follow through when it came to the waiving of copayments. Whoever comes out with basically the most robust idea tends to be followed.

We know that UnitedHealth earlier today also was providing premium reimbursements because as more people are hitting that unemployment mark, they're worried that they're going to be-- there's going to be more of a drop off. And so to avoid that, they're crediting premiums, also looking at how there's a decrease in costs and that's one of the factors that get built into premium prices. So with all of those moving parts, they're really trying to adapt to the situation right now.

SEANA SMITH: Anjalee, thanks so much.