The federal government required Humana to sell the Medicare Advantage plans as part of approval for buying Arcadian Management Services. Cigna will offer the new customers Medicare Advantage plans through its subsidiary HealthSpring, which the Bloomfield-based health insurer acquired in January for $3.8 billion.
Video: Cigna Plans to Sell 15 Million Shares to Fund Purchase
Insurer Cigna to buy HealthSpring for $3.8B
Cigna is the fourth-largest commercial health insurer based on enrollment, trailing WellPoint Inc., UnitedHealth Group Inc. and Aetna Inc. It operates health care, group disability and life segments in the U.S. The insurer also has a growing international segment that sells individual insurance in several countries and operates an expatriate business that covers people living outside their home countries.
Cigna Management Discusses Q3 2012 Results
Sure, Scott. A few points. As we noted in our prepared comments, for 2013, given the momentum we continue to build through ’11 and ’12, our broad expectations are that we will grow revenue as well as earnings. And I’d ask you to step back and think about some of our capabilities to enable us to do that in this really challenging environment, and then I’ll comment on national accounts. First, our broad funding capabilities in the United States are very helpful, as employers of all sizes are looking for the most effective way to align their incentives and engage their employees. Secondly, our broad portfolio of specialty capabilities, health improvement and productivity capabilities continue to be a strong add to us. Third, we now have a very well-positioned Medicare Advantage portfolio of businesses. And fourth, our International portfolio of businesses will be extremely helpful to us as we step into 2013. As it relates to national accounts, the national account selling season, it’s sufficiently complete. There’s always some open switches that are in front of us. As we sit here today, we would expect for our national accounts, which we define as commercial employers with 5,000 or more employees that are multistate, so we define it more narrowly than some define it. For that marketplace, we’d expect at this point in time, overall, a good retention rate. We had an outstanding retention rate in 2012. We expect a very good retention rate in 2013. At this point in time, we see less business as having moved in either direction. So the net effect of that is we’re expecting that we will keep share or maintain share in aggregate in the national segment. We view the national segment as a shrinking segment if you track the employer profile. So that’s about a 2% shrinkage factor that we expect exists in the overall national account marketplace because of the employment pattern, and we expect to maintain share in that environment. The last thing I’d add is we expect to further grow revenue and further grow our specialty penetration in that portfolio based on the focus of repositioning that book of business.
Cigna HealthCare of Arizona Highest Rated Medicare Plan in Arizona
PHOENIX – Oct. 30, 2012 – The Centers for Medicare & Medicaid Services (CMS) recently released the results of its Five-Star rating system, which measures clinical quality and performance benchmarks for Medicare Advantage plans. Cigna HealthCare of Arizona achieved the highest overall rating in Arizona with 4.5 stars out of five stars. Scores are based on more than 50 performance measures that are collected through three surveys: HEDIS (Healthcare Effectiveness Data and Information Set), CAHPS (Consumer Assessment of Healthcare Providers and Systems) and HOS (Health Outcomes Survey)
OPINION: Who wins with Medicare Advantage?
Over the past several years, the largest insurers — Unitedhealth, WellPoint, Aetna, Cigna and Humana — have reported record profits, even during the quarters when enrollment in their employer-based and individually purchased health plans declined because of the recession. They’ve been able to do this in two ways: by taking in significantly more in premiums from their commercial customers than they have paid out in medical claims, and by persuading increasing numbers of retirees to enroll in their Medicare Advantage plans. If you enroll in one of their plans, the government sends a check to the insurance company you choose for your coverage. The amount varies depending on where you live. You might have to pay an additional premium out of your own pocket for better drug coverage, a broader network of providers, reduced copayments and discounts on gym memberships.
Cigna (CI) And Aetna (AET) Create Acquire And Develop Businesses To Meet Growing Health Care Needs
Boxer says CI‘s technology is key to meetings the company’s goals, and he says the company’s HealthEview is a central strategy. “This application takes an individual’s health and risk factors, and applies a powerful set of algorithms that allows us to better manage health and deliver the right care in the right setting. Then we have a set of care coordinators using this application to conduct proactive outreach,” he said.
Goon Review Cigna Provides Medicare Advantage Plans For Senior Citizens
Cigna is a well-known insurance carrier for quit some time and they’ve made it their responsibility to provide a selection of health care insurance plans like Medicare Advantage Plans intended for senior citizens in the United States. It is frequently tough for seniors who might have quite a few health conditions to obtain good insurance coverage but they would have the capacity to through Cigna. Together with offering a selection of health care coverage the firm likewise has a legal contract with the government to provide Medicare plans to seniors. Due to this they’re able to offer a number of helpful Medicare plans that an individual who is eligible for the government assisted insurance will be able to select.They not only provide your health coverage they likewise provide your medical care through Cigna Medical Group (CMG). By providing health coverage and medical care together you are able to build a solid connection with your medical doctor and your care team – experts that are committed to aiding you get the most out of your health so you can get the most out of life. And along with their CMG staff you gain access to an extensive network of more than 4000 specialists in the community – find out about medicare plans with Cigna.To start with Cigna offers Medicare prescription medication plans. As everyone knows prescription medications could be very costly. A few of the medicines could cost more than one hundred dollars a month. Numerous senior citizens have to take several medications each day and that can cost more than a fixed income could afford. Cigna offers two different prescription medication plans that you can take into consideration. The details of the two are below.Cigna Medicare RX Basic would go in conjunction with most parts of Medicare and it’s obtainable in every state of the nation. The plan has a selection of valuable benefits. For instance it does not include a deductable that will keep you from having to pay with your own money. Furthermore it would continue to pay for prescriptions even through the Medicare donut hole which will cut off most healthcare coverage. Generally generic medication through this plan would cost nothing out of pocket. Cigna Medicare Select Plus Rx is only included in the state of Arizona and it will work just with Medicare HMP plans. With this option you will actually get some healthcare together with prescription medications. The plan doesn’t have any monthly cost and it has no deductibles to reach. Prescriptions are available at a discount and the plan would even help to pay on physician’s appointments.In addition to these two prescription plans Cigna likewise offers Medicare Advantage Plans. They just recently eliminated the option of the HMO plans yet others are available to people who qualify for Medicare. Not all of these plans are available in every state so it would be important to research precisely what is available in your state before determining if these plans are best for you.
Should You Invest in This Healthcare Takeover?
WellPoint purchased AMERIGROUP Corporation (NYSE:AGP) for almost $4.5 billion, in a deal that makes the combined companies the largest private Medicaid enterprise by membership. WellPoint is expecting operating revenues to rise almost 2% in 2012, and operating EPS of $7.45 compared to 2011’s $7.00 total. However, the company’s CEO did step down a month ago, in part due to several large investors being disappointed over company execution. AMERIGROUP is expected to increase premium revenues by 40% in 2012, driven by expansion in existing markets and entry into Louisiana, expansion in Texas and the May 1st acquisition of Health Plus. Health benefits costs are expected to rise to 86% of premium revenues (health benefits ratio), from 2011’s 83.7% mark.
Cigna: A Lot Riding On Managed Medicare
Higher debt levels of 60% of equity — the worst amongst its peers in our table above, has crimped profits and hurt its chances for further acquisitions. This industry, which is characterized by cut throat competition and little product differentiation, needs further consolidation and Cigna’s comparatively lower cash hoard makes acquisition led growth difficult in the future.