Centene to restructure PBM following 4 states' claims of inflated drug costs

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Centene said Oct. 26 it plans to restructure its pharmacy benefits management business after four states claimed the insurer inflated prescription drug costs, Bloomberg reported. 

Centene plans to seek proposals from outside companies to help it manage its more than $30 billion in annual drug spending. Its current PBM contract expires at the end of 2023, according to Bloomberg

"That's going to be a huge opportunity for an external PBM," Drew Asher, Centene's CFO, said on a call with analysts, Bloomberg reported. 

Centene earlier this year recorded a $1.1 billion accounting charge in anticipation of resolving disputes with states that allege the St. Louis-based insurer overcharged their Medicaid programs. It has agreed to pay more than $200 million to resolve claims in Arkansas, Illinois, Ohio and Mississippi and expects to settle more claims, Bloomberg reported. The company has denied any liability. 

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