The Cigna Group has completed the sale of its Medicare Advantage, Cigna Supplemental Benefits, Medicare Part D, and CareAllies businesses to US customer-owned health insurer Health Care Service Corporation (HCSC).
Cigna Group previously disclosed that the transaction had a total value of approximately US$3.7bn.
The majority of the proceeds from the sale are expected to be allocated to share repurchases, in line the Cigna group’s capital deployment priorities.
Cigna said the sales helped the group to streamline it’s portfolio and enabled it to drive further innovation to support customers.
It added that the transaction is not expected to disrupt coverage or service for customers, clients, providers, or brokers of the Medicare or CareAllies businesses.
HCSC now serves 26.5 million people, including 4.3 million Medicare members, across the United States. It also provides coverage for large and small employers, individuals and families, and Medicare and Medicaid plans.
The Cigna Group will continue to provide pharmacy benefit services and other solutions to the Medicare businesses through its health services company Evernorth Health Services as part of agreements with HCSC for an agreed period post-closing.
David Cordani, chairman and CEO of the Cigna Group said: “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.”
HCSC CEO, president and vice chairman Maurice Smith 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.
“We recognise 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.”
