The Cigna Group has come to an agreement to sell a selection of its businesses to Health Care Service Corporation (HCSC) for a sum of about $3.7 billion. The businesses in question include Cigna’s Medicare Advantage and Supplemental Benefits, their Medicare Part D business, and CareAllies, their valued-based care firm.
Even with this sale, Evernorth Health Services, a subsidiary of the Cigna Group, will continue to deliver pharmacy benefit services to the Medicare businesses. The deal between the two corporations is anticipated to be finalized in the first quarter of 2025.
David M. Cordani, chairman and CEO of The Cigna Group, expressed that while Medicare is a potentially profitable component of the healthcare market, the Medicare units of the business demand an abundance of investment, concentration, and resources that were disproportionate to their scale within The Cigna Group’s portfolio.
The Cigna Group will be utilizing the majority of its earnings from this sale to repurchase company shares. Maurice Smith, CEO, president, and vice chair of HCSC, stated that this acquisition is a significant boost to their growth strategy in the Medicare market.
Cigna is looking forward to releasing its fourth quarter 2023 income results on Friday, Feb. 2, 2024. Following this, they plan to host investor day in New York City on March 7, 2024.




