Becker's Healthcare February 1, 2024
Cigna’s plan to sell its Medicare business to Health Care Service Corp. is clearing a path for future mergers and acquisitions, according to S&P analysts.
The company’s Medicare segment “just didn’t have that scale relative to where they needed to be and the margins didn’t line up,” S&P Global Ratings analyst Francesca Mannarino wrote Jan. 31. “So divesting this business could potentially set themselves up for future opportunity.”
On Jan. 31, Cigna announced it had reached a deal to sell its Medicare Advantage, supplemental, Part D and CareAllies business to HCSC for $3.3 billion. The sale will nearly quadruple HCSC’s Medicare Advantage membership. HCSC — which operates Blue Cross Blue Shield affiliates in Illinois, Texas, New Mexico, Oklahoma and...
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