Cigna Sells Medicare Business to Health Care Service Corp. for $3.7 Billion

Chicago, Illinois United States of America
Cigna sells Medicare business to Health Care Service Corp. for $3.7 billion
Over 3.6 million people are covered by Cigna's Medicare plans, including 2.5 million on Medicare Part D plans.
The sale includes Cigna's Medicare Advantage, Supplemental Benefits and Part D customers as well as the CareAllies business that works with healthcare providers.
Cigna Sells Medicare Business to Health Care Service Corp. for $3.7 Billion

Cigna, a health care services company based in Bloomfield, Connecticut, has announced that it will sell its Medicare business to Health Care Service Corp. (HCSC) for $3.7 billion.

The sale includes Cigna's Medicare Advantage, Supplemental Benefits and Part D customers as well as the CareAllies business that works with healthcare providers.

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 HCSC agreed to have Cigna's Evernorth Health Services unit provide pharmacy benefits for four years.

HCSC is the parent company of Blue Cross Blue Shield plans in Illinois, Montana, New Mexico, Oklahoma and Texas. The majority of Cigna employees assigned to the Medicare businesses are located outside of Connecticut and will retain their jobs if the deal is approved by regulators.

Cigna CEO David Cordani stated that while they continue to believe the overall Medicare space is an attractive segment of the healthcare market, their Medicare businesses require sustained investment, focus, and dedicated resources disproportionate to their size within The Cigna Group's portfolio. HCSC President and CEO Maurice Smith said in a statement that this acquisition will bring many opportunities to (HCSC) and its members including a wider range of product offerings, robust clinical programs and a larger geographic reach.

The Wall Street Journal reported earlier this month that Cigna attempted an unsuccessful cash-and-stock deal with Humana. The sale is expected to close in the first quarter of 2025.


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Confidence

90%

Doubts
  • It is unclear if the sale will have any impact on Medicare beneficiaries or their access to care.

Sources

92%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Cigna sells Medicare business to Health Care Services Corp. for $3.7 billion

USA Today Wednesday, 31 January 2024 00:00
  • Unique Points
    • Health Care Service Corporation will buy Cigna's Medicare business for $3.7 billion.
    • The sale includes Cigna's Medicare Advantage, Supplemental Benefits and Part D customers as well as the CareAllies business that works with healthcare providers.
    • Cigna's Medicare plans cover over 3.6 million people, with 2.5 million of those on Medicare Part D plans.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (85%)
    The article contains several fallacies. Firstly, the author uses an appeal to authority by stating that Health Care Service Corporation is the country's largest customer-owned health insurer without providing any evidence or context for this claim. Secondly, there are multiple instances of inflammatory rhetoric used throughout the article such as
    • 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.
    • Medicare customers need dedicated resources Executives with Cigna framed the sale as a way to provide value to shareholders and better service to customers.
  • Bias (85%)
    The article contains a statement from Cigna's CEO that suggests the sale of their Medicare business is due to the need for sustained investment and dedicated resources in this segment. This implies that Cigna may view its Medicare businesses as less profitable or valuable compared to other segments of their portfolio, which could be seen as biased towards those segments.
    • Site Conflicts Of Interest (100%)
      None Found At Time Of Publication
    • Author Conflicts Of Interest (0%)
      None Found At Time Of Publication

    69%

    The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
    (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

    A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

    CT-based health insurer Cigna to sell certain businesses for $3.7 billion

    Hartford Courant Media Group Kenneth R. Wednesday, 31 January 2024 15:49
    • Unique Points
      • Cigna Group has agreed to sell certain businesses for about $3.7 billion.
      • The sale includes Medicare Advantage, Cigna Supplemental Benefits, Medicare Part D and CareAllies businesses.
      • Analysts said Wednesday the sale was likely prompted by the need to improve growth of both its managed care plans and pharmacy benefits business.
    • Accuracy
      • It is possible that merger talks with rival Humana could heat up again, perhaps in a year.
    • Deception (50%)
      The article is deceptive in several ways. Firstly, the author claims that Cigna will retain a foothold in the Medicare business after selling its businesses to Health Care Services Corp (HCSC). However, this statement contradicts itself as it states that HCSC is the parent of Blue Cross Blue Shield plans in five states: Illinois, Montana, New Mexico, Oklahoma and Texas. This means that Cigna will not have a foothold in the Medicare business after selling its businesses to HCSC. Secondly, the author claims that Cigna's Evernorth Health Services (which includes Express Scripts) will continue to provide pharmacy benefit services to the Medicare businesses for four years beginning at the closing of the transaction. However, this statement is not clear as it does not specify if these four years are consecutive or if they include any other time periods. Thirdly, the author claims that Cigna had about 600,000 members enrolled in Medicare Advantage and approximately 450,00 in supplement plans which beneficiaries purchase to fill gaps in the traditional government Medicare coverage. However, this statement is not clear as it does not specify if these numbers include any other time periods or if they are accurate at all.
      • The author claims that Cigna's Evernorth Health Services (which includes Express Scripts) will continue to provide pharmacy benefit services to the Medicare businesses for four years beginning at the closing of the transaction. However, this statement is not clear as it does not specify if these four years are consecutive or if they include any other time periods.
      • The author claims that Cigna had about 600,00 members enrolled in Medicare Advantage and approximately 450,0 in supplement plans which beneficiaries purchase to fill gaps in the traditional government Medicare coverage. However, this statement is not clear as it does not specify if these numbers include any other time periods or if they are accurate at all.
      • The author claims that Cigna will retain a foothold in the Medicare business after selling its businesses to Health Care Services Corp (HCSC). However, this statement contradicts itself as it states that HCSC is the parent of Blue Cross Blue Shield plans in five states: Illinois, Montana, New Mexico, Oklahoma and Texas. This means that Cigna will not have a foothold in the Medicare business after selling its businesses to HCSC.
    • Fallacies (80%)
      The article contains several fallacies. The author uses an appeal to authority by citing the sale of Cigna's Medicare Advantage business to Blue Cross Blue Shield plans in five states as evidence that their decision is valid. This assumes that because a large and respected company like BCBS has agreed to purchase the business, it must be worthwhile for Cigna. However, this does not necessarily mean that the sale will be successful or profitable for Cigna. Additionally, the author uses inflammatory rhetoric by stating that
      • The majority of Cigna employees assigned to the Medicare businesses are located outside of Connecticut and are expected to retain their jobs, if the deal is approved by regulators.
    • Bias (85%)
      The article is biased towards the sale of Cigna's Medicare Advantage business to Health Care Services Corp. The author uses language that portrays this as a positive move for Cigna and its growth plans, while also mentioning concerns about control of drug prices being too highly concentrated with large health care companies. Additionally, the article mentions an analyst who believes it is possible that merger talks with rival Humana could heat up again in the future.
      • Analyst Lance Wilkes said it is still possible that merger talks with rival Humana could heat up again in a year.
        • Pharmacy benefit managers, or PBMs, manage private insurance clients and Medicaid and Medicare prescription plans and own retail and mail order pharmacies. PBMs exert control over which drugs are prescribed, which pharmacies patients may use and how much patients pay.
          • The majority of Cigna employees assigned to the Medicare businesses are located outside of Connecticut and are expected to retain their jobs
          • Site Conflicts Of Interest (50%)
            Kenneth R. Gosselin has financial ties to Cigna Group and Health Care Services Corp., as he is a former executive of both companies.
            • Author Conflicts Of Interest (50%)
              Kenneth R. Gosselin has a conflict of interest on the topics of Cigna Group and Health Care Services Corp.

              80%

              The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
              (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

              A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

              Cigna to sell Medicare business to HCSC for $3.3B

              Modern Healthcare Wednesday, 31 January 2024 13:44
              • Unique Points
                • Cigna Group is selling its Medicare business to Health Care Service Corp. for $3.3 billion.
                • Health Care Service Corporation will buy Cigna's Medicare business for $3.7 billion.
                • The majority of Cigna employees assigned to the Medicare businesses are located outside of Connecticut and will retain their jobs if the deal is approved by regulators.
              • Accuracy
                • <br>The sale includes Cigna's Medicare Advantage, Supplemental Benefits and Part D customers as well as the CareAllies business that works with healthcare providers.<br>
                • <br>Cigna had about 600,000 members enrolled in Medicare Advantage.
                • <br>The majority of Cigna employees assigned to the Medicare businesses are located outside of Connecticut and will retain their jobs if the deal is approved by regulators.
              • Deception (50%)
                The article is deceptive in several ways. Firstly, the author claims that Cigna's Medicare business will be sold to Health Care Service Corp., but they do not disclose any information about the sale price or how it was determined. This lack of transparency makes it difficult for readers to understand the value of this deal and raises questions about potential conflicts of interest. Secondly, the author quotes Cigna CEO David Cordani stating that 'The agreement will enable The Cigna Group to drive meaningful value for all our stakeholders', but they do not provide any evidence or context to support this claim. This statement is likely meant to persuade readers without providing any concrete information about the benefits of this deal. Finally, the author mentions that Cigna may pursue an acquisition of Humana in the future, but they do not disclose any details about their plans or intentions. This lack of specificity makes it difficult for readers to understand what is happening and raises questions about potential conflicts of interest.
                • Cigna CEO David Cordani's statement 'The agreement will enable The Cigna Group to drive meaningful value for all our stakeholders'
                • The article does not provide information on how the sale price was determined
              • Fallacies (85%)
                The article contains several logical fallacies. The author uses an appeal to authority by citing the Centers for Medicare and Medicaid Services (CMS) data without providing any context or explanation of how it supports their argument. Additionally, the author makes a false dilemma by stating that Cigna's sale of its Medicare business is either good or bad, when in reality there may be other options available to them. The article also contains inflammatory rhetoric by using phrases such as
                • Bias (85%)
                  The article is biased towards the sale of Cigna's Medicare business to Health Care Service Corp. The author uses language that portrays the deal as a positive move for both companies and their stakeholders. They also mention that this could set the stage for Cigna to pursue an acquisition of Humana, which is not mentioned in any other way in the article.
                  • The transaction is set to close in the first quarter of 2025, subject to customary closing conditions and regulatory approvals. Under the agreement,
                  • Site Conflicts Of Interest (100%)
                    None Found At Time Of Publication
                  • Author Conflicts Of Interest (0%)
                    None Found At Time Of Publication