The Cigna Group (NYSE: CI) announced the acquisition by Chicago-based Health Care Service Corp. (HCSC) of its Medicare Advantage, Cigna Supplemental Benefits, Medicare Part D and CareAllies businesses for approximately $3.7 billion.
Under the terms of the acquisition, Cigna and HCSC entered into a four-year services agreement under which Evernorth Health Services, a Cigna subsidiary, effective on closing of the transaction – the deal is expected to be finalized in the first quarter of 2025, pending regulatory approvals.
David M. Cordani, chairman and CEO of the Bloomfield-based Cigna, said the deal was “aligned with our highly disciplined approach to managing our portfolio and allocating resources toward growth opportunities in our Evernorth Health Services and Cigna Healthcare portfolios. While we continue to believe the overall Medicare space is an attractive segment of the healthcare market, our Medicare businesses require sustained investment, focus, and dedicated resources disproportionate to their size within The Cigna Group’s portfolio. We continue to see significant, meaningful growth opportunities for government services, including Medicare, in our Evernorth Health Services portfolio of businesses.”
