Becker's Healthcare February 7, 2024
It’s going to be a difficult task for Health Care Service Corp. to turn Cigna’s Medicare business into a financially successful endeavor, according to a Moody’s analysis shared with Becker’s.
“We estimate that Cigna’s MA business has struggled to be profitable in recent years,” the analysts wrote Feb. 5. “Therefore, it will take effort, time and resources to sustainably improve performance.”
Cigna reached a deal in January to sell its Medicare business to HCSC for $3.3 billion, which is expected to close in early 2025. The sale includes Cigna’s Medicare Advantage, supplemental benefits, Medicare Part D offerings, and CareAllies, a value-based care management subsidiary. The deal will free up $400 million in financial reserves for Cigna, making the total value...
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