Health Care Service Corporation on March 19 announced it has completed the previously announced acquisition of The Cigna Group Medicare Advantage, Medicare Supplemental Benefits, Medicare Part D and CareAllies businesses.
“This transaction is fully aligned with our mission of expanding access to quality health care by adding capabilities and deepening our geographic presence across the United States,” said Maurice Smith, HCSC’s CEO, President and Vice Chair. “We recognize that the health and wellness needs for older Americans are growing, and we plan to have an important role in helping seniors live healthier, fuller lives. We are excited to welcome our new Medicare members and the employees who will continue to help them achieve their best health.”
The Cigna Group said in a March 19 release the divestment of these assets streamlines the company’s portfolio and enables it to drive further innovation to support customers. Proceeds from the sale will be used in alignment with The Cigna Group’s capital deployment priorities, with the majority expected to be allocated to share repurchases.
The Cigna Group will continue to provide pharmacy benefit services and other solutions to Medicare members through Evernorth Health Services as part of services agreements for an agreed period post-closing.
“We are proud of the positive impact we have made in people’s lives and the unique value provided through our Medicare businesses and are confident that HCSC will continue the meaningful work that we have done for these customers. We remain committed to serving Medicare populations through the portfolio of products and services we offer through Evernorth Health Services,” said David M. Cordani, Chairman and CEO of The Cigna Group.
With Wednesday’s close of the deal, Chicago-based HCSC now serves 26.5 million people, including 4.3 million Medicare members, across the United States through a portfolio of platforms and solutions that empower whole person health with compassion and innovation.
The transaction is not expected to disrupt service for customers, clients, providers, and brokers of the Medicare or CareAllies businesses. Coverage continues and remains unchanged, helping to ensure that access to care continues seamlessly, with no disruption. Medicare members with questions about their coverage should contact the number on their member ID card.
SEE RELATED THREAD: HSC Blue Cross completes Cigna acquisition
