Cigna To Sell Its Medicare Business To Health Care Service Corp.
Cigna is shedding its troubled Medicare Advantage, Medigap, and Medicare part D plans that cover 3.6 million people. The business will be sold to Health Care Service Corp., a Blue Cross Blue Shield insurer.
Stat:
Health Care Service Corp To Buy Cigna Medicare Advantage Plans
Cigna is officially exiting the Medicare business, agreeing to sell all of its Medicare insurance plans to Health Care Service Corp., a large Blue Cross Blue Shield insurer, for $3.3 billion. (Herman, 1/31)
USA Today:
Health Care Service To Buy Cigna Medicare Business In $3.7 Billion Sale
Cigna's Medicare plans cover over 3.6 million people, with 2.5 million of those on Medicare Part D plans, according to a Health Care Service news release. As part of the deal, Chicago-based Health Care Service agreed to have Cigna's Evernorth Health Services unit provide pharmacy benefits for four years. "The acquisition will bring many opportunities to (Health Care Service) and its members − including a wider range of product offerings, robust clinical programs and a larger geographic reach," company CEO Maurice Smith said in a statement. (Powel, 1/31)
In other Medicare news —
Axios:
Medicare Advantage Insurers To See Small Base Pay Decrease
Insurers who administer private Medicare plans would see their base payments cut slightly next year, by 0.16%, under a federal proposal announced Wednesday. But the insurers still could see $16 billion more in 2025 revenues once payments are adjusted based on how sick their enrollees appear, Medicare officials said. (Goldman, 2/1)
Newsweek:
Texas Secession Would Mean Millions Of Seniors Lose Medicare
If Texas seceded from the United States, residents might be in for a brutal pushback when it comes to Medicare benefits, experts told Newsweek. While Texas is amid a border crisis, with Governor Greg Abbott disclosing last week that more than six million migrants passed into the United States within the last three years, a movement pushing for the Southern state to leave the country has emerged online, with roughly 211,000 people following the Texas Nationalist Movement page on Facebook. Those in favor of Texas's independence from the United States might be troubled to learn leaving the country could have dire impacts on benefits like Social Security and Medicare. (Blake, 1/30)
