The stock market pummeled Cigna on Thursday after the company’s leaders revealed that their new plan to ditch pharmacy benefit rebates will lower that segment’s profit in the coming years. By midmorning, the company’s stock had plunged more than 15%.

Cigna announced earlier this week that its Express Scripts pharmacy benefit manager will become rebate-free for many commercial health plans beginning in 2027, eliminating a contentious element of that business and aligning with the Trump administration, whose leaders have encouraged pharmacy benefit managers to drop rebates voluntarily.

But doing so comes with steep upfront costs, executives said on their third quarter earnings call Thursday. After CEO David Cordani talked up the model in his opening remarks — noting that it will cut th

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