Healthcare Insurance Giant Cigna Mulls Offloading Medicare Advantage Business
Portfolio Pulse from Vandana Singh
Cigna Corporation is considering the sale of its Medicare Advantage business, which could be worth billions. The decision comes after a decade of expansion in the sector and may be a response to a challenging reimbursement environment. Profit margins have fallen short of Cigna's 4% to 5% target, and changes to the government's star rating system are expected to decrease the ratings of Cigna's Medicare Advantage plans in 2024. Despite this, Cigna has expanded its Medicare Advantage footprint, now covering over 40% of eligible individuals.

November 06, 2023 | 6:17 pm
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Cigna Corporation is considering selling its Medicare Advantage business due to falling profit margins and a challenging reimbursement environment. This could potentially impact the company's stock price.
The potential sale of a significant business segment like Medicare Advantage could lead to uncertainty among investors, potentially leading to a decrease in Cigna's stock price in the short term. The company's profitability has been under pressure due to changes in the government's reimbursement model and increased administrative costs.
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