On January 31, Cigna announced their intention to sell their Medicare Advantage, Part D, supplemental benefits, and CareAllies businesses to Health Care Service Corporation (HCSC).
The companies are aiming to close the estimated $3.7 billion deal early next year; however, the acquisition must first pass the required regulatory approvals.
Who Is Buying Cigna Medicare?
HCSC is buying Cigna’s Medicare business to expand affordable health care access and provide quality service to Medicare-eligible individuals across the U.S. The company is the country’s largest customer-owned health insurer and has been serving beneficiaries for nearly half a century.
Currently, HCSC serves more than 22 million people and offers health plans in Illinois, Montana, New Mexico, Oklahoma, and Texas.
Does This Change Anything for Agents & Policyholders Right Now?
Nothing will change with how Cigna operates or how members receive benefits until after the deal has closed. Cigna and HCSC will remain separate companies until the transaction is complete.
Both parties have agreed to enter into a four-year agreement, upon closing, in which Evernorth Health Services, a Cigna subsidiary, will continue providing pharmacy benefit services to the Medicare businesses.