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January 4, 2024

Cigna nears deal to sell Medicare Advantage business for up to $4B

PHOTO | COSTAR Cigna headquarters in Bloomfield.

Health insurance giant Cigna is in “advanced talks” with a potential buyer for its Medicare Advantage business, the Wall Street Journal reported.

The Bloomfield-based company is looking to sell its Medicare unit to Health Care Service Corp., a Chicago-based health insurer, for between $3 billion and $4 billion, according to the report.

Cigna began looking to shed its Medicare business late last year, a reversal of its expansion in the sector, Reuters reported in November. 

Medicare Advantage is an alternative to government-sponsored Medicare, which is offered by private companies, mostly to people 65 and older. Medicare Advantage plans are approved and funded by the federal government.

Cigna had roughly 599,000 Medicare Advantage members at the end of September, according to the Wall Street Journal. The company’s revenue totalled $7.9 billion in 2022. 

The move follows the company’s failed effort to acquire rival Humana in December, which would have created a massive company with a combined market value worth more than $140 billion.

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