Bengaluru: Insurer Health Care Service Corp stated on Wednesday it might purchase Cigna’s Medicare enterprise that manages government-backed medical insurance for folks aged 65 and older for $3.3 billion in money.
The sale consists of Cigna’s Medicare strains, together with Medicare Advantage, Medicare complement and Medicare drug plans, in addition to a unit referred to as CareAllies that works with doctor teams and different healthcare suppliers.
The divestiture marks a change in Cigna’s technique for the sector it had entered with its $3.8-billion acquisition of HealthSpring in 2011.
The overwhelming majority of Cigna’s income comes from its industrial enterprise and pharmacy advantages division, which it bolstered with the $52-billion buy of Express Scripts in 2018.
Cigna’s Medicare Benefit enterprise generated 4.4 per cent of the corporate’s $179.4 billion income from exterior clients in 2022. Its plans at present serve 3.6 million Medicare members.
The deal is predicted to shut in early 2025, Well being Care Service stated.