Cigna sells Medicare enterprise to Well being Care Service for $3.3 bln – ET HealthWorld | Pharma

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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.

Health Care Service holds a license to offer Blue Cross Blue Shield insurance policy in 5 U.S. states. It employs greater than 27,000 folks and 18.6 million members.

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.

  • Printed On Feb 1, 2024 at 12:36 PM IST

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