Cigna Group to Sell Medicare Businesses to HCSC for $3.7 Billion

Cigna Group has announced its acquisition by Health Care Service Corp. (HCSC) of various Medicare-related businesses, totaling approximately $3.7 billion. This acquisition includes Cigna's Medicare Advantage, Cigna Supplemental Benefits, Medicare Part D, and CareAllies businesses.

The acquisition will be solidified through a four-year services agreement with Evernorth Health Services, a Cigna subsidiary, effective upon the closing of the transaction, which is expected to be completed in the first quarter of 2025, pending necessary regulatory approvals. David M. Cordani, Cigna’s chairman and CEO, emphasized the strategic nature of this move as an alignment with Cigna's disciplined management approach and focus on growth opportunities, especially in the Medicare segment.

Cordani noted that while the Medicare market is promising, it requires significant resources and investment, pointing out the company's intention to enhance growth in its government services related to Medicare.