Fierce Healthcare January 31, 2024
Cigna will sell off its Medicare business to Health Care Service Corporation in a deal valued at $3.7 billion, the company announced Wednesday.
HCSC will acquire Cigna’s Medicare Advantage, Part D, supplemental benefits and CareAllies businesses, and the parties expect the deal to close in the first quarter of 2025. In addition, the Blues insurer has entered into a four-year arrangement with Cigna’s Evernorth subsidiary, which will continue to provide pharmacy services to the Medicare plans should the sale close.
People close to the situation told Bloomberg earlier this month that Cigna and HCSC were in “exclusive” talks for the Medicare deal. Other interested buyers reportedly included Elevance Health, another Blues giant.
Cigna CEO David Cordani said that the sale...
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