Health Care Service purchases Cigna's Medicare division for $3.3 billion.
Health Care Service purchases Cigna's Medicare division for $3.3 billion.
Reuters, 8:25 p.m. on January 31, 2024
January 31 (Reuters) - Health Care Service Corp, an insurer, announced on Wednesday that it will pay $3.3 billion in cash to acquire Cigna's (CI.N), opens new tab Medicare business, which oversees government-sponsored health insurance for individuals 65 and older.
Together with a business called CareAllies that collaborates with medical groups and other healthcare providers, Cigna's Medicare lines—which include Medicare Advantage, Medicare supplement, and Medicare prescription plans—are being sold.
Cigna's approach to the industry, which it had entered with the $3.8 billion acquisition of HealthSpring in 2011, has changed as a result of the divestment.
In five states across the country, Health Care Service is authorised to offer Blue Cross Blue Shield insurance policies. There are 18.6 million subscribers and about 27,000 employees.
Cigna's commercial business and pharmacy benefits division generate the majority of its revenue. In 2018, the company strengthened this sector by purchasing Express Scripts for $52 billion.
4.4% of Cigna's $179.4 billion in revenue from outside clients came from its Medicare Advantage division in 2022. At present, 3.6 million Medicare participants are served by its plans.
Early in 2025, the sale is anticipated to finalise, according to Health Care Service.
Editing by Sriraj Kalluvil; reporting by Sriparna Roy in Bengaluru
Source reuters.com
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