CIGNA headquarters
Health Care Service Corporation (HCSC) has successfully completed its purchase of The Cigna Health Group’s Medicare Advantage, Cigna Supplemental Benefits, Medicare Part D and CareAllies businesses.
“This transaction is fully aligned with our mission of expanding access to quality health care by adding capabilities and deepening our geographic presence across the United States," said Maurice Smith, CEO, president and vice chair of HCSC. "We recognize that the health and wellness needs for older Americans are growing, and we plan to have an important role in helping seniors live healthier, fuller lives. We are excited to welcome our new Medicare members and the employees who will continue to help them achieve their best health."
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As part of the transaction, Cigna and HCSC have agreed to enter into a four-year services agreement under which Evernorth Health Services, a Cigna subsidiary, will continue to provide pharmacy benefit services to the Medicare businesses, effective on closing of the transaction. Cigna previously announced that it will strategically use proceeds from the transaction in alignment with its capital deployment priorities, with the majority of the proceeds allocated to share repurchases.
"We are proud of the positive impact we have made in people's lives and the unique value provided through our Medicare businesses, and are confident that HCSC will continue the meaningful work that we have done for these customers,” said David M. Cordani, chairman and CEI of Cigna. “We remain committed to serving Medicare populations through the portfolio of products and services we offer through Evernorth Health Services."
The transaction is not expected to disrupt coverage or service for customers, clients, providers or brokers of the Medicare or CareAllies businesses. Coverage continues and remains unchanged, helping ensure that patient care continues seamlessly, with no disruption, Cigna said.
Following the deal’s closing, HCSC now serves 26.5 million people, including 4.3 million Medicare members, across the United States.
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Alan Goforth
Alan Goforth is a freelance writer in suburban Kansas City. In addition to freelancing for several publications, he has written a dozen books about sports and other topics.
