Anthem Merger Plan Deals Blow To Cigna’s Profits
The insurer's profits fell 8.8% in the fourth quarter.
The Wall Street Journal:
Cigna Profit Falls 8.8%
Cigna Corp. on Thursday said its fourth-quarter profit fell 8.8% as the health-care provider took a hit from charges related to its proposed merger with Anthem Inc., though revenue increased. The company also gave full-year guidance below analysts’ expectations, saying it expects earnings of $8.85 to $9.25 a share, compared with estimates of $9.30 a share, according to Thomson Reuters. (Steele, 2/4)
Cigna's Profit Slumps; Medicare Suspension Dings Outlook
Fourth-quarter earnings at health insurer Cigna Corp. dropped 9%, but there are bigger questions about how Cigna will rectify the problems in its Medicare Advantage and Part D plans. ... Looking ahead to this year, Cigna projected adjusted earnings per share between $8.85 and $9.25, below previous company and Wall Street expectations. That's because last month, the CMS put a halt to Cigna's Medicare operations. The CMS said in a strongly worded letter (PDF) that “Cigna's conduct poses a serious threat to the health and safety of Medicare beneficiaries” and builds on the insurer's “long-standing history of noncompliance with CMS requirements.” For example, some Medicare Advantage members asked Cigna to cover medical services, but Cigna denied the requests without getting insights from providers. Cigna also stymied the appeals process for people who challenged Cigna's medical determinations, according to the CMS. (Herman, 2/4)