The Strategist

Cigna to sell assets, including Medicare segment, for $3.7B

02/01/2024 - 06:14

Health Care Service Corp. (HCSC) will purchase US health insurer Cigna Corp.'s Medicare national insurance program business and subsidiary CareAllies, which provides services to healthcare organizations, for about $3.7 billion, the company announced.

ICMA Photos
ICMA Photos
It is anticipated that the deal would be finalized in 2025's first quarter. Share repurchases will be financed mostly by the proceeds.

For the next four years, Evernorth Health Services, a Cigna business, will continue to provide services to the sold Medicare section.

In a press release, Cigna quoted its CEO and chairman David Cordani as saying, "We continue to believe the Medicare field is an attractive segment of the healthcare market, but our businesses in this area require consistent investment, attention and a commitment of resources not commensurate with their size within the Cigna Group portfolio."