BLOOMFIELD, Conn., March 19, 2025 – The Cigna Group (NYSE: CI) has finalized the sale of its Medicare Advantage, Cigna Supplemental Benefits, Medicare Part D, and CareAllies businesses to Health Care Service Corporation (HCSC), the global health company announced today.
This strategic move streamlines The Cigna Group’s business focus, enabling further innovation to better serve its customers. Proceeds from the sale will be used in line with the company’s capital deployment priorities, with most of the funds expected to be used for share repurchases.
“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. We remain committed to serving Medicare populations through the portfolio of products and services we offer through Evernorth Health Services,” said David M. Cordani, Chairman and Chief Executive Officer of The Cigna Group.
The Cigna Group will maintain its presence in the Medicare space by continuing to provide pharmacy benefit services and other solutions to the Medicare businesses through its Evernorth Health Services arm. This will be maintained as part of service agreements with HCSC for a set period after the deal’s closing.
“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,” said Maurice Smith, HCSC’s CEO, President and Vice Chair. “We recognize 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.”
The transaction is designed to minimize any disruptions for existing customers, clients, providers, and brokers. Coverage will remain unchanged, ensuring continuous patient care. Medicare customers with any questions regarding their coverage are advised to refer to the provided contact information on their member ID cards.
Advisors Centerview Partners LLC served as the financial advisor to The Cigna Group, with additional financial advice from Morgan Stanley & Co. LLC. Wachtell, Lipton, Rosen & Katz acted as corporate legal counsel, with Rule Garza Howley LLP, Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., and Sidley Austin LLP serving as regulatory counsels.
The Cigna Group “The Cigna Group” by The Cigna Group.
About The Cigna Group The Cigna Group (NYSE:CI) is a global health company committed to creating a better future built on the vitality of every individual and every community. We relentlessly challenge ourselves to partner and innovate solutions for better health. The Cigna Group includes products and services marketed under Cigna Healthcare, Evernorth Health Services or its subsidiaries. The Cigna Group maintains sales capabilities in more than 30 markets and jurisdictions, and has approximately 182 million customer relationships around the world. Learn more at thecignagroup.com.
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