Cigna has successfully completed the $3.3 billion sale of its Medicare business to Health Care Service Corporation (HCSC). The transaction includes Cigna’s Medicare Advantage, Part D prescription drug plans, supplemental benefits, and CareAllies divisions.
Although Cigna will no longer manage its Medicare unit directly, the company will continue offering pharmacy benefit management and other healthcare services through its Evernorth division as part of an ongoing agreement with HCSC.
According to Cigna, the proceeds from this sale will be allocated across various strategic initiatives, with a significant portion expected to go toward stock buybacks.
Both companies have assured that the transition will not impact coverage for current members, healthcare providers, or brokers.
HCSC CEO Maurice Smith emphasized that the acquisition aligns with the company’s mission to expand access to high-quality healthcare services across the U.S. He highlighted the growing healthcare needs of seniors and reaffirmed HCSC’s commitment to enhancing their well-being.
“We are excited to welcome our new Medicare members and the dedicated employees who will continue supporting them in achieving optimal health,” Smith stated.
This acquisition strengthens HCSC’s capabilities in the Medicare sector while allowing Cigna to focus on its core business operations and future growth strategies.
