Experts Say Timing Is Right for Cigna to Get Out of Medicare Market
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Feb 02, 2024
Capping off months of rumors that such a deal was brewing, The Cigna Group on Jan. 31 said it has agreed to sell its Medicare business to Health Care Service Corp. (HCSC). Industry observers say that given the near-term headwinds Medicare Advantage is facing, it’s wise for Cigna to leave a market in which it struggled to compete and focus on more promising growth opportunities.
The $3.7 billion purchase will transfer nearly 600,000 Medicare Advantage members, more than 450,000 Medicare Supplement lives and 2.5 million Medicare Part D lives from Cigna to HCSC, the companies said. The Blue Cross Blue Shield licensee will also acquire Cigna’s CareAllies business, which offers “management services to support value-based care arrangements” and works with providers to form accountable care organizations and independent physician associations.
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