Cigna completes $3.3B sale of medicare businesses to HCSC
PHOTO | COSTAR
Cigna headquarters in Bloomfield.
Bloomfield-based global health insurer The Cigna Group said Wednesday it has completed the sale of its Medicare-related businesses to Health Care Service Corp. (HCSC).
The $3.3 billion deal, first announced in January 2024, includes the sale of Cigna’s Medicare Advantage, Cigna Supplemental Benefits, Medicare Part D, and CareAllies businesses. Proceeds from the sale will be used to meet Cigna's capital deployment priorities, with the majority expected to be allocated to share repurchases.
Cigna will continue to provide pharmacy benefit and other services to the Medicare businesses through its health services company Evernorth Health Services, as part of services agreements with HCSC for an agreed period after the closing.
The sale is not expected to disrupt coverage or service for customers, clients, providers, or brokers of the Medicare or CareAllies businesses, Cigna said, adding that Medicare customers with questions about their coverage may contact the number on their member ID cards.
Following the deal’s closing, HCSC now serves 26.5 million people, including 4.3 million Medicare members, across the United States.
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