BLOOMFIELD, Conn., March 19,
2025 /PRNewswire/ -- Global health company The Cigna
Group (NYSE: CI) today announced the successful completion of the
sale of its Medicare Advantage, Cigna Supplemental Benefits,
Medicare Part D, and CareAllies businesses to Health Care Service
Corporation (HCSC). The divestment of these assets streamlines The
Cigna Group's portfolio and enables it to drive further innovation
to support customers.
As previously announced, proceeds from the sale will be used in
alignment with The Cigna Group's capital deployment priorities,
with the majority expected to be allocated to 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 continue to provide pharmacy
benefit services and other solutions to the Medicare
businesses through its health services company Evernorth Health
Services as part of services agreements with HCSC for an agreed
period post-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 not expected to disrupt coverage or service
for customers, clients, providers, or brokers of the Medicare or
CareAllies businesses. Coverage continues and remains unchanged,
helping to ensure that patient care continues seamlessly, with no
disruption. Medicare customers with questions about their coverage
are able to contact the number on their member ID card.
Advisors
Centerview Partners LLC is acting as financial advisor to The
Cigna Group. Morgan Stanley & Co. LLC provided additional
financial advice. Wachtell, Lipton, Rosen & Katz is serving as
corporate legal counsel, and Rule Garza Howley LLP, Mintz, Levin,
Cohn, Ferris, Glovsky and Popeo, P.C., and Sidley Austin LLP are
serving as regulatory counsels.
Cautionary Note Regarding Forward-Looking Statements
This press release, and oral statements made in connection with
this release, may contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are based on The Cigna Group's current
expectations and projections about future trends, events and
uncertainties. These statements are not historical facts.
Forward-looking statements may include, among others, statements
regarding The Cigna Group's future beliefs, expectations, plans,
intentions, liquidity, cash flows, financial condition or
performance. You may identify forward-looking statements by the use
of words such as "believe," "expect," "project," "plan," "intend,"
"anticipate," "estimate," "predict," "potential," "may," "should,"
"will" or other words or expressions of similar meaning, although
not all forward-looking statements contain such terms.
Forward-looking statements are subject to risks and
uncertainties, both known and unknown, that could cause actual
results to differ materially from those expressed or implied in
forward-looking statements. Such risks and uncertainties include,
but are not limited to: our ability to achieve our strategic and
operational initiatives; our ability to adapt to changes in an
evolving and rapidly changing industry; our ability to compete
effectively, differentiate our products and services from those of
our competitors and maintain or increase market share; price
competition and other pressures that could compress our margins or
result in premiums that are insufficient to cover the cost of
services delivered to our customers; the potential for actual
claims to exceed our estimates related to expected medical claims;
our ability to develop and maintain satisfactory relationships with
health care payors, physicians, hospitals, other health service
providers and with producers and consultants; our ability to
maintain relationships with one or more key pharmaceutical
manufacturers or if payments made or discounts provided decline;
changes in the pharmacy provider marketplace or pharmacy networks;
changes in drug pricing or industry pricing benchmarks; our ability
to invest in and properly maintain our information technology and
other business systems; our ability to prevent or contain effects
of a potential cyberattack or other privacy or data security
incident; risks related to our use of artificial intelligence and
machine learning; political, legal, operational, regulatory,
economic and other risks that could affect our multinational
operations, including currency exchange rates; risks related to
strategic transactions and realization of the expected benefits of
such transactions, as well as integration or separation
difficulties or underperformance relative to expectations which
could lead to an impairment charge; dependence on success of
relationships with third parties; risk of significant disruption
within our operations or among key suppliers or third parties;
potential liability in connection with managing medical practices
and operating pharmacies, onsite clinics and other types of medical
facilities; the substantial level of government regulation over our
business and the potential effects of new laws or regulations or
changes in existing laws or regulations; uncertainties surrounding
participation in government-sponsored programs such as Medicare;
the outcome of litigation, regulatory audits and investigations;
compliance with applicable privacy, security and data laws,
regulations and standards; potential failure of our prevention,
detection and control systems; unfavorable economic and market
conditions, the risk of a recession or other economic downturn and
resulting impact on employment metrics, stock market or changes in
interest rates and risks related to a downgrade in financial
strength ratings of our insurance subsidiaries; the impact of our
significant indebtedness and the potential for further indebtedness
in the future; credit risk related to our reinsurers; as well as
more specific risks and uncertainties discussed in our most recent
report on Form 10-K and subsequent reports on Forms 10-Q and 8-K
available through the Investor Relations section
of www.thecignagroup.com. You should not place undue
reliance on forward-looking statements, which speak only as of the
date they are made, are not guarantees of future performance or
results, and are subject to risks, uncertainties and assumptions
that are difficult to predict or quantify. The Cigna Group
undertakes no obligation to update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise, except as may be required by law.
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.
INVESTOR RELATIONS CONTACT:
Ralph Giacobbe
860-787-7968
Ralph.Giacobbe@TheCignaGroup.com
MEDIA CONTACT:
Justine Sessions
860-810-6523
Justine.Sessions@Evernorth.com
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SOURCE The Cigna Group
