HSC Blue Cross completes Cigna acquisition

[somarco]

going national, like UHC & Aetna?

Neither of those are true national carriers. Both have specific carriers for states like NY. UHC may also use different carriers (or state specific filings) for WI, MN and MA.

Aetna has roughly half a dozen issuing carriers including . . .

Our family of companies
Aetna Health and Life Insurance Company
Aetna Health Insurance Company
Aetna Life Insurance Company
Accendo Insurance Company
American Continental Insurance Company
Continental Life Insurance Company of Brentwood, Tennessee
Coventry Health and Life Insurance Company
First Health Life and Health Insurance

Regardless of how it all shakes out, it looks like this is going to be a big mess.

 

[kgmom219]

I'm in IL and word from my HCSC contacts is that their 5 state BCBS MA/PD+Supp business will fold into Cigna management, while maintaining their U65 dominance in the existing 5 states separately. The name Cigna must eventually be changed bc CIGNA still has other lines of business besides Medicare. HCSC cannot operate their new Medicare expansion, in other than their existing 5 states, under the name BCBS because of territorial licensing restrictions. // I'm wondering if they will sell off entire states to the other Blues who want to strengthen their own MAPD/Supp business?

Interesting.

Especially because that's the opposite of what I'm hearing.

Blue will absorb Cigna 065 business.

In HCSC states, everyone will go Blue. In non HCSC states, it will be sold and Marketed as Cigna.

HCSC Over 65 is in chaos. The President just left "to pursue other opportunities".

They probably don't have a clue.

 

[somarco]

. In non HCSC states, it will be sold and Marketed as Cigna.

How is that possible?

 

[InsuranceGuy29]

It is Nationwide, the screenshot is what agents contracted in Oklahoma received. I received the same email from BCBS of OK & TX. HCSC owns BCBS of TX, IL, OK, NM & MT. HCSC is going to expand from 5 states to 50 states for Medicare products, I expect it to be a mess. I am not sure what to expect in 2026 regarding CIGNA vs BCBS products, HCSC does a good job of keeping brokers in the loop.

They also do a great job of making brokers work for free. I'm in Illinois and they now don't pay commission on 6 out of their 9 PPO plans. With a few of them being their best plans. I refuse to write their sh*t company for anything.

 

[rmhaire]

They also do a great job of making brokers work for free. I'm in Illinois and they now don't pay commission on 6 out of their 9 PPO plans. With a few of them being their best plans. I refuse to write their sh*t company for anything.

The Medicare landscape is changing. Get ready for more.

I heard this last month from pretty high up:

This summer, Integrity and ACE are coming out with their own plan. How often do you see one of the largest FMOs become an actual insurance company?

 

[kgmom219]

They also do a great job of making brokers work for free. I'm in Illinois and they now don't pay commission on 6 out of their 9 PPO plans. With a few of them being their best plans. I refuse to write their sh*t company for anything.

That's because they totally screwed up the pricing and were going to lose money on every MAPD sold.

 

[MedicareWAA]

The Medicare landscape is changing. Get ready for more.

I heard this last month from pretty high up:

This summer, Integrity and ACE are coming out with their own plan. How often do you see one of the largest FMOs become an actual insurance company?

Integrity does this often. They're not taking the underwriting risk. They develop and distribute the product, and the insurance carrier partner administers it and manages the risk.

In some cases, integrity never tells you they have a hand in the product. They collect what is sometimes called a "silent override". The top contract might pay 70% but there's an extra 2 or 3 points held back for Integrity. If a non-integrity downline sells the product - like Amerilife - Integrity still makes money.

Sometimes they are transparent about it. But I can count st least three ancillary products for which integrity earns a silent override that's not publicized.

In all cases, this is super high margin business.