Healthcare Services Corp. announced Wednesday that it will acquire Cigna's Medicare business.
In $3.7 billion sale, Healthcare Services, the nation's largest customer-owned health insurance company, takes control of Cigna's Medicare Advantage, Supplemental Benefits and Part D customers and CareAlls business, which works with health care providers. I will do it.
Cigna's Medicare plans cover more than 3.6 million people, 2.5 million of whom are covered by Medicare Part D plans, according to a news release from Healthcare Services.
As part of the agreement, Chicago-based Healthcare Services agreed to have Cigna's Evernorth Health Services division provide pharmacy benefits for four years.
“This acquisition provides (Healthcare Services) and its members with many benefits, including a broader product offering, stronger clinical programs, and greater geographic coverage,” CEO Maurice Smith said in a statement. It will bring opportunities.”
Medicare customers need “dedicated resources”
Broomfield, Conn.-based Cigna executives positioned the sale as a way to deliver value to shareholders and better serve customers.
“While we continue to believe that the overall Medicare space is an attractive segment of the healthcare market, we continue to invest in our Medicare business,” said David Cordani, Chairman and CEO of Cigna. , requires focus, and dedicated resources that are disproportionate to the size within Cigna Group's portfolio.” said in a statement.
The Wall Street Journal reported in November that Cigna had attempted a cash and stock deal with Humana to combine the two companies.
The contract with Healthcare Services is expected to close in the first quarter of 2025. Cigna stock ended the day up 0.67%.
Cigna stock price
