Cigna has closed the sale of its Medicare Advantage business to Health Care Service Corp.
The sale includes The Cigna Group’s MA, Medicare Part D and supplemental benefits businesses, according to a March 19 news release. HCSC will also acquire CareAllies, Cigna’s value-based care management subsidiary.
The deal was first announced in January 2024. HCSC agreed to purchase Cigna’s Medicare assets for $3.3 billion. Cigna plans to use the majority of the proceeds from the sale for stock repurchases.
Cigna will continue to serve the Medicare population through its Evernorth health services business, CEO David Cordani said.
“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,” Mr. Cordani added.
As of February, Cigna had nearly 700,000 Medicare Advantage members. Its MA business was a small fraction of its 17.5 million members.
HCSC operates Blue Cross Blue Shield affiliates in Illinois, Texas, Montana, New Mexico and Oklahoma. The acquisition will nearly quadruple the company’s Medicare Advantage membership.
“This transaction is fully aligned with our mission of expanding access to quality healthcare by adding capabilities and deepening our geographic presence across the United States,” Maurice Smith, HCSC’s CEO, said.
The deal is not expected to disrupt services for members, providers or brokers.
