Cigna Weighing Its Participation In Health Marketplaces As GOP Moves To Overhaul
The insurer, which reported a drop in profits for the fourth quarter of 2016, says it is losing money on its Affordable Care Act business.
The Wall Street Journal:
Cigna To Review Participation In Affordable Care Act Exchanges
Cigna Corp. became the latest insurer to say it will review its participation in Affordable Care Act exchanges this spring, as it watches for what steps Republicans will take as they move to overhaul the health law. Cigna, which offers plans in seven states’ ACA marketplaces, said it expects its individual-plan enrollment of 168,000 to grow by about 100,000 this year. The insurer has been losing money on the ACA plans and said it still won’t be profitable in 2017, but the company expects some improvement. In the future, the results will either improve or Cigna will pull out of marketplaces, said Cigna Chief Executive David Cordani during a call with analysts. (Wilde Mathews and Hufford, 2/2)
Cigna Still Determining 2018 Exchange Participation, Calls Marketplaces 'Fragile At Best'
Cigna's profit dropped 10.5% in the fourth quarter of 2016, despite building revenue from membership growth and higher premiums and fees. ... The lower results were largely due to higher medical costs from customers enrolled in its Medicaid and individual Affordable Care Act exchange plans. Profit totaled $1.8 billion in 2016, down 11.3% over 2015. Analysts said the results were slightly better than expected. (Livingston, 2/2)