Health Care Service to buy Cigna Medicare business in $3.7 billion sale

Health Care Service to buy Cigna Medicare business in .7 billion sale

Health Care Service Corporation announced Wednesday that it will buy Cigna’s Medicare business.

The $3.7 billion sale will see Health Care Service, the country’s largest customer-owned health insurer, take control of Cigna’s Medicare Advantage, Supplemental Benefits and Part D customers, as well as the CareAllies business that works with healthcare providers.

Cigna’s Medicare plans cover over 3.6 million people, with 2.5 million of those on Medicare Part D plans, according to a Health Care Service news release.

As part of the deal, Chicago-based Health Care Service agreed to have Cigna’s Evernorth Health Services unit provide pharmacy benefits for four years.

“The acquisition will bring many opportunities to (Health Care Service) and its members − including a wider range of product offerings, robust clinical programs and a larger geographic reach,” company CEO Maurice Smith said in a statement.

Medicare customers need ‘dedicated resources’

Executives with Cigna − based in Bloomfield, Connecticut − framed the sale as a way to provide value to shareholders and better service to customers.

“While we continue to believe the overall Medicare space is an attractive segment of the healthcare market, our Medicare businesses require sustained investment, focus, and dedicated resources disproportionate to their size within The Cigna Group’s portfolio,” David Cordani, Cigna chairman and CEO, said in a statement.

Next Post

Nutrients For Vision, Gut And Heart Health

Sun Feb 4 , 2024
Carrots might just be the most versatile vegetable. And whether they’re raw or roasted, savory or sweet, you’ll get the same nutritional benefits from carrots. “Carrots are budget-friendly, have a long shelf life, can be consumed raw or cooked, by themselves or mixed in a dish and are one of […]
Nutrients For Vision, Gut And Heart Health

You May Like