Ritter Insurance Marketing, Craig Ritter

2017 Cigna Medicare Advantage Acquisitions Possible

It’s only been one month since its $54 billion deal officially ended with Anthem, but Cigna is already on the lookout for new potential business partners. It’s possible we could see Cigna Medicare Advantage acquisitions in 2017.

Cigna Chief Executive Officer David Cordani stated the company has $7 billion to $14 billion it could use this year for mergers and acquisitions. One of the areas in which he specified the company is interested in growing is its Medicare Advantage business.

Pre-Anthem deal, Cigna considered buying Humana, which brings in two-thirds of its revenue through Medicare Advantage. Humana decided not to accept Cigna’s proposal, and instead, attempted a deal with Aetna. Both the Anthem-Cigna and Aetna-Humana mergers were eventually blocked in court.

There’s no official news on any potential Cigna Medicare Advantage acquisitions yet. However, it wouldn’t be surprising to see Cigna try to rekindle the flame it once had with its rival.

In addition to acquisitions and mergers, Cigna is also contemplating expanding internationally and further developing its pharmacy and provider-related businesses, retail capabilities, and government risk-based insurance programs, according to Cordani.

CMS recently lifted sanctions on Cigna’s Medicare Advantage and Part D businesses. Cigna has submitted rates for the seven states where it plans to offer individual health plans on the exchanges in 2018, but may end up withdrawing from the Affordable Care Act market depending on whether the government continues to pay for cost-sharing subsidies.

Posted by filed under Cigna, Medicare Advantage .

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