Bloomfield, Conn., March 19, 2025 – The Cigna Group (NYSE: CI), a global health services company, has officially completed the sale of its Medicare-related businesses to Health Care Service Corporation (HCSC). The transaction includes Cigna’s Medicare Advantage, Medicare Part D, Cigna Supplemental Benefits, and CareAllies businesses. This strategic move allows The Cigna Group to streamline its operations and focus on driving innovation to better serve its customers.
The proceeds from the sale will be utilized in line with The Cigna Group’s capital allocation strategy, with a significant portion expected to fund share repurchases. This decision reflects the company’s commitment to delivering value to its shareholders while maintaining a strong financial position.
David M. Cordani, Chairman and CEO of The Cigna Group, expressed pride in the impact the Medicare businesses have had on customers’ lives. He stated, “We are confident that HCSC will build on the strong foundation we’ve established and continue to deliver exceptional care to Medicare beneficiaries. At the same time, we remain dedicated to serving Medicare populations through our Evernorth Health Services portfolio, which offers a wide range of health solutions.”
As part of the agreement, The Cigna Group will continue to provide pharmacy benefit services and other health solutions to the Medicare businesses through its subsidiary, Evernorth Health Services. This arrangement ensures continuity of care and support for Medicare customers during the transition.
HCSC, a leading health insurer, views this acquisition as a strategic step toward expanding its capabilities and geographic reach in the U.S. healthcare market. Maurice Smith, CEO, President, and Vice Chair of HCSC, emphasized the company’s commitment to addressing the growing health and wellness needs of older Americans. “We are thrilled to welcome new Medicare members and the talented employees who will continue to support them. Our goal is to help seniors lead healthier, more fulfilling lives,” Smith said.
The transition is designed to be seamless, with no disruption to coverage or services for customers, providers, or brokers. Medicare beneficiaries can continue to access their existing plans and services as usual. Those with questions about their coverage are encouraged to contact the number on their member ID card for assistance.
The sale of Cigna’s Medicare businesses to HCSC highlights a broader trend in the healthcare industry, where companies are increasingly focusing on core competencies and strategic partnerships to enhance efficiency and innovation. Medicare Advantage, in particular, has become a highly competitive market, with insurers vying to provide value-added services to an aging population. HCSC’s acquisition positions it as a stronger player in this space, while Cigna’s decision to divest allows it to concentrate on its pharmacy benefit management (PBM) and health services offerings through Evernorth.
This transaction also underscores the importance of collaboration in healthcare, as both companies aim to improve outcomes for Medicare beneficiaries while navigating the complexities of the U.S. healthcare system. As the industry continues to evolve, such strategic moves are likely to shape the future of healthcare delivery and access for millions of Americans.
Reference: Cigna Group Completes Sale of Medicare Businesses to HCSC