The Cigna Group has completed the sale of its Medicare health benefits businesses and a medical care provider services operation to Health Care Service Corp., the parent of five Blue Cross and Blue Shield health insurance plans. In this photo is the Blue Cross Blue Shield Tower in Chicago, Illinois, the home of Health Care Service Corp. and Blue Cross and Blue Shield of Illinois. (Photo By Raymond Boyd/Getty Images)
2014 Raymond Boyd
The Cigna Group has closed the sale of its Medicare health benefits businesses and a medical care provider services operation for $3.3 billion to Health Care Service Corp., the parent of five Blue Cross and Blue Shield health insurance plans.
According to terms of the deal first announced last year, Health Care Service has acquired Cigna’s Medicare Advantage plans, Cigna supplemental benefits, Medicare Part D drug benefits, and CareAllies, a business that helps medical care providers with various administrative services and contracting.
Chicago-based Health Care Service operates Blue Cross and Blue Shield health insurance plans in Illinois, Texas, Oklahoma, and New Mexico, with more than 26 million people across the country in its various benefits plans and is looking to expand its Medicare Advantage product offerings.
Medicare Advantage plans contract with the federal government to provide extra benefits and services to seniors, such as disease management and nurse help hotlines, with some also offering vision, dental care, and wellness programs.
The acquisition will make Health Care Service Corp. a player in Medicare Advantage in the markets where it often is the largest provider of commercial health insurance coverage. Health Care Service now serves 26.5 million people, including 4.3 million Medicare members, the company said.
“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 Health Care Service chief executive officer, president, and vice-chair Maurice Smith.
Cigna said it will “continue to provide pharmacy benefit services and other solutions to Medicare members” through its Evernorth Health Services business, which includes the pharmacy benefit management company Express Scripts, as part of the deal. “We remain committed to serving Medicare populations through the portfolio of products and services we offer through Evernorth Health Services,” said Cigna chairman chief executive David Cordani.
