The Cigna Group Completes Sale of Medicare Businesses

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The Cigna Group completed the sale of multiple healthcare related businesses to Health Care Service Nation (HCSC).¹ The assets in the sale included Medicare Advantage, Cigna Supplemental Benefits, Medicare Part D, and CareAllies. Moving forward, Cigna will focus its efforts on improving its customer support features.

In a press release, The Cigna Group’s chair and chief executive officer David M. Cordani said, “We are proud of the positive impact we have made in people's lives and the unique value provided through our Medicare businesses and are confident that HCSC will continue the meaningful work that we have done for these customers. We remain committed to serving Medicare populations through the portfolio of products and services we offer through Evernorth Health Services.”

In the same press release, HSCS’s CEO, president, and vice chair Maurice Smith added, “This transaction is fully aligned with our mission of expanding access to quality health care by adding capabilities and deepening our geographic presence across the United States. We recognize that the health and wellness needs for older Americans are growing, and we plan to have an important role in helping seniors live healthier, fuller lives. We are excited to welcome our new Medicare members and the employees who will continue to help them achieve their best health."

Cigna first announced plans for the sale in January, 2024. At the time, the total transaction value was listed as $3.7 billion.²

In a press release issued at the time, Cordani said, “The agreement will enable The Cigna Group to drive meaningful value for all our stakeholders, providing an enhanced ability to accelerate investment and growth in our services platform, while further deepening our commitment to our existing health benefits platform. In tandem, the transaction will position our Medicare businesses and CareAllies for additional growth as they continue to serve the needs of their customers as part of HCSC. This decision is aligned with our highly disciplined approach to managing our portfolio and allocating resources toward growth opportunities in our Evernorth Health Services and Cigna Healthcare portfolios. While we continue to believe the overall Medicare space is an attractive segment of the healthcare market, our Medicare businesses require sustained investment, focus, and dedicated resources disproportionate to their size within The Cigna Group's portfolio. We continue to see significant, meaningful growth opportunities for government services, including Medicare, in our Evernorth Health Services portfolio of businesses."

In the same press release, Smith explained, “HCSC is building on its commitment to lead and expand access to quality affordable care for people in all phases of their lives. This acquisition supplements our growth strategy in the large and growing Medicare marketplace and will bring many opportunities to HCSC and its members–including a wider range of product offerings, robust clinical programs, and a larger geographic reach. We look forward to offering our proven member and provider engagement model to even more people, and we are excited to welcome Cigna's Medicare and CareAllies teams with their demonstrated talent and expertise."

Sources

1. The Cigna Group Completes Sale of Medicare Businesses to HCSC. The Cigna Group. March 19, 2025. https://www.prnewswire.com/news-releases/the-cigna-group-completes-sale-of-medicare-businesses-to-hcsc-302405790.html
2. The Cigna Group to Sell Medicare Businesses and CareAllies to Health Care Service Corporation (HCSC). The Cigna Group. January 31, 2024. Accessed March 20, 2025. https://newsroom.thecignagroup.com/2024-01-31-The-Cigna-Group-to-Sell-Medicare-Businesses-and-CareAllies-to-Health-Care-Service-Corporation-HCSC