Workweek February 6, 2024
Cigna sells MA business to HCSC for $3.7 billion
Announced on Jan. 31, Cigna is selling its 600,000 member Medicare Advantage business to Health Care Services Corp for a disclosed $3.7B. Jared Strock had a nice breakdown of the valuation implications and the segments included on LinkedIn here.
Cigna added some color on its earnings call as well, noting the plan generated $12 billion in revenue in 2023. Cigna also secured a 4-year deal for its pharmacy benefit manager Express Scripts to continue providing services for the plan, and Evernorth as a whole will have opportunities to sell other services like clinical care coordination into the newly secured HCSC asset. Overall, the deal is expected to close in early 2025.
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