HCSC Acquires Cigna’s Medicare and CareAllies Segments

Cigna Finalizes Sale of Medicare and CareAllies Businesses to HCSC

➥ Source: https://www.hcsc.com/newsroom

The Cigna Group has officially completed the sale of its Medicare Advantage, Cigna Supplemental Benefits, Medicare Part D, and CareAllies businesses to Health Care Service Corporation (HCSC), marking a significant shift in its strategic direction. This move allows Cigna to streamline its portfolio and focus on driving innovation across its core business segments.

Proceeds from the sale will primarily be used for share repurchases, in line with Cigna’s capital deployment strategy. Despite the divestiture, Cigna will continue to serve Medicare populations through Evernorth Health Services, its health services division, which will also provide ongoing support to the Medicare businesses under HCSC through existing service agreements.

Cigna’s CEO David Cordani emphasized the company’s pride in its Medicare legacy and expressed confidence in HCSC’s ability to continue delivering high-quality care to Medicare beneficiaries. HCSC President and CEO Maurice Smith highlighted the deal as a strategic opportunity to expand access to healthcare and enhance services for older Americans.

Customers, providers, brokers, and clients of the Medicare and CareAllies businesses can expect no disruption to service or coverage as a result of the transition.

📰 Read the full press release