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

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. 

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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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