Well being Care Service to purchase Cigna Medicare enterprise in $three.7 billion sale

Well being Care Service Company introduced Wednesday that it’s going to buy Cigna’s Medicare enterprise.

The $three.7 billion sale will permit Well being Care Service, the nation’s largest customer-owned well being insurer, to take management of Cigna’s Medicare Benefit, Supplemental Advantages and Half D prospects, in addition to the CareAllies enterprise that works with well being care suppliers.

Cigna’s Medicare plans cowl greater than three.6 million folks, of whom 2.5 million have Medicare Half D plans, in response to a information launch from the Well being Care Service.

As a part of the deal, Chicago-based Well being Care Service agreed to have Cigna’s Evernorth Well being Providers unit present pharmacy advantages for 4 years.

“The acquisition will present many alternatives (to Well being Care Service) and its members, together with a broader vary of product choices, sturdy medical packages and higher geographic attain,” firm CEO Maurice Smith mentioned in a press release. .

Medicare Purchasers Want ‘Devoted Sources’

Executives at Bloomfield, Connecticut-based Cigna framed the sale as a method to ship worth to shareholders and higher service to prospects.

“Whereas we proceed to consider that the general Medicare area is a horny phase of the healthcare market, our Medicare companies require sustained funding, focus and devoted assets disproportionate to their dimension inside The Cigna Group portfolio,” David Cordani, president and CEO of Cigna, mentioned in a press release.