So long Cigna...Cigna sells Medicare businesses to HCSC for $3.7B

[Duaine]

Cigna has agreed to sell its Medicare business to Health Care Service Corporation for roughly $3.7 billion, the health insurer announced Wednesday.

HCSC is acquiring Cigna’s Medicare Advantage, supplemental benefits and Medicare Part D plans, along with CareAllies, a division that helps providers transition to value-based care. In total, the plans cover 3.6 million people on Medicare.

The companies said they expect the deal — which includes $3.3 billion in cash and $400 million in capital Cigna expects to be freed up — to close in the first quarter of 2025, subject to regulatory approval.

The deal marks a major step forward in Medicare for Chicago-based HCSC, which operates employer, individual and family and Medicare and Medicaid plans in five states.

[EXTERNAL LINK] - Cigna sells Medicare businesses to HCSC for $3.7B | Healthcare Dive

 

[Millwood]

Well it looks like HCSC is buying Cigna Supplemental benefits division as well.
That would be Cigna's Med Supp division in addition to Advantage and Part D

 

[somarco]

Well it looks like HCSC is buying Cigna Supplemental benefits division as well.
That would be Cigna's Med Supp division in addition to Advantage and Part D

I was never impressed with their Medigap product line. Seemed obvious to me they had no direction and would not be a long term player.

I never placed anything with them and have no regrets.

 

[goillini52]

Just got this email from BCBSIL today...old news.

Medicare Transaction Update for Our Brokers As you know, Health Care Service Corporation (operating in Illinois through its division Blue Cross and Blue Shield of Illinois) has signed a definitive agreement to acquire Cigna’s Medicare Advantage, Supplemental Benefits, Medicare Part D, and CareAllies businesses. We expect the transaction to close in the first quarter of 2025, subject to regulatory approvals and other customary closing conditions. We are excited about this transaction and the value it will deliver to members following closing. We want to assure you, our valued broker partners, that we appreciate your continued partnership and remain committed in servicing and supporting you during this transition and post-closing. Cigna’s Medicare businesses and HCSC remain separate companies until closing. Medicare plans will continue to be offered and sold under each company’s respective brand(s) for the 2025 plan year. We will continue to evaluate integration between both companies beyond the 2025 timeline. Since the transaction is expected to close in 2025, there will be no changes to Medicare Advantage plan benefits or premiums in plan year 2025 for either company (Medicare Supplement plans will follow state filings.) HCSC and Cigna members will remain enrolled in and covered by their existing HCSC/Cigna plan upon the close of the transaction in 2025 for the duration of the 2025 plan year. The Group Retiree Business will remain business as usual and your HCSC and Cigna representatives respectively will be in contact with you along the way for all of the exciting changes this brings to the market, for you and your clients. Both Cigna and HCSC are committed to a smooth transition and ensuring the continuity of service for our valued broker partners as well as continuity of service and access to care for our customers following the close. We look forward to keeping you informed and following up with additional updates as they become available. Thank you for your continued partnership and dedication to our members. FAQs If my customer is enrolled in a Cigna Medicare plan for the 2025 plan year, what will happen to that plan when the transaction closes? Will the customer automatically be transitioned to a plan offered through a division of HCSC? Customers will remain enrolled in and covered by their existing Cigna plan upon the close of the transaction in 2025 for the duration of the 2025 plan year. There will be no changes to plan benefits or premiums in plan year 2025. Will the closing trigger a special election period for my customers? No, a special election will not be triggered. Customers will remain on their existing plan and coverage. After close, will HCSC offer plans – Medicare Advantage, Supplemental Benefits or PDP – in markets where Cigna Medicare operates today, but HCSC does not? Yes. We will provide updates as information becomes available.

 

[rmhaire]

Just got this email from BCBSIL today...old news.

As you know, Health Care Service Corporation (operating in Illinois through its division Blue Cross and Blue Shield of Illinois) has signed a definitive agreement to acquire Cigna’s Medicare Advantage, Supplemental Benefits, Medicare Part D, and CareAllies businesses. We expect the transaction to close in the first quarter of 2025, subject to regulatory approvals and other customary closing conditions.

You should have bought them.

 

[goillini52]

You should have bought them.

I never did much with Cigna. I'm contracted with them, but threw all of their supplies away and moved the few Med Supp clients I had with them to different carriers after reading this.

Major health insurance company asks managers to avoid hiring white men: Report | Blaze Media

Critical race theory at it again

www.theblaze.com

 

[rmhaire]

I never did much with Cigna. I'm contracted with them, but threw all of their supplies away and moved the few Med Supp clients I had with them to different carriers after reading this.

Major health insurance company asks managers to avoid hiring white men: Report | Blaze Media

Critical race theory at it again

www.theblaze.com

I missed that one. I'd done the same thing.

Wrote em back before Obama got his license but nothing since.

 

[kgmom219]

Wait til all the people with huge Cigna books find out how HCSC pays agents.

Pro tip: They pay 1/1 MAPD and Part D “around” Feb 20th.

There are no advances and they pay upon premium payment. If you write an 8/1 in May, you get paid “around 8/20”.

You cannot download the commission statements into a workable excel.

It’s super fun!