Cigna Keeps Medical Costs in Check in 3Q, Raises Full-Year Earnings Outlook

  • Nov 04, 2022

    Cigna Corp. on Nov. 3 reported third-quarter adjusted earnings per share (EPS) of $6.04, beating the Wall Street consensus expectation of $5.72 and getting a nod from one equities analyst for delivering “well-controlled medical costs.” During the company’s conference call to discuss quarterly results, executives touted Cigna’s big PBM contract win that will allow it to provide pharmacy benefits for Centene Corp. Yet they also fielded a critical analyst question about whether Cigna’s mergers and acquisitions (M&A) strategy is keeping up with the competition. 

    On the subject of the Centene PBM contract, which will begin in 2024 and cover 20 million members, Cigna CEO David Cordani said it “builds on Express Scripts’ track record as the partner of choice and will present growth opportunities to provide additional Evernorth health services over time.” Added Chief Financial Officer Brian Evanko: “This mutually beneficial partnership will bring significant revenue and be financially accretive over the course of the multi-year contract term.” In 2023, though, the new contract will create a “one-year headwind” financially as Cigna’s Express Scripts division invests funds to get the new partnership started, executives acknowledged. 

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  • Leslie Small

    Leslie has been reporting and editing in various journalism roles for nearly a decade. Most recently, she was the senior editor of FierceHealthPayer, an e-newsletter covering the health insurance industry. A graduate of Penn State University, she previously served in editing roles at newspapers in Pennsylvania, Virginia and Colorado.

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