https://www.bnnbloomberg.ca/hcsc-elevance-compete-for-cigna-medicare-advantage-unit-1.2012204
Health Care Service Corp. and Elevance Health Inc. are competing to acquire Cigna Group’s business providing medical coverage to people aged 65 and over, people with knowledge of the matter said.
Bloomfield, Connecticut-based Cigna expects final bids for its Medicare Advantage business to be submitted next week, according to the people. The asset may fetch more than $3 billion, they said.
One of the US’s largest managers of pharmacy benefits, Cigna also offers comprehensive medical coverage, including through private Medicare Advantage plans sold to people over the age of 65. It’s a relatively minor player in that market, with fewer than 600,000 Medicare Advantage enrollees as of March, according to data from health researcher KFF.
Cigna’s Medicare Advantage business is on track to lose money this year and next, according to confidential numbers shared with potential buyers, the people said.
Deliberations on the sale are ongoing and there’s no certainty they’ll result in a transaction, according to the people, who asked not to be identified discussing confidential information. Other bidders could also emerge, they said. Representatives for Cigna, HCSC and Elevance couldn’t immediately be reached for comment.
In November, it emerged that Cigna was in discussions with Humana Inc. about a potential merger to create a giant of US health insurance. Talks collapsed after the two sides failed to agree on price and Cigna is instead planning a “significant” increase in stock buybacks.
