Reports Cigna may be looking to divest its group benefits business comes as rivals are spending billions of dollars to expand their medical care provider operations.
Cigna last year bought the pharmacy benefit manager Express Scripts in a deal that expanded the insurer’s health benefits operations, offering employers and government clients a package of medical and pharmacy coverage options. But that deal did little to bolster Cigna’s partnerships with providers of medical care that are increasingly falling under the umbrella of large health insurance companies.
Cigna chief executive David Cordani has said the company’s strategy is to “focus on whole person health.” And that may mean forming closer ties with the medical care providers actually treating the person.
Reuters Tuesday reported Cigna has hired an investment bank to shop the group benefits business, saying it could be valued at up to $6 billion. Cigna’s group benefits operations include life insurance and disability benefits, which are businesses other big health insurance companies have already unloaded in recent years to free up cash for mergers and acquisitions.
Cigna wouldn’t comment on the Reuters report in a statement Tuesday but said its executives are constantly reviewing “opportunities” in the market. “Given the dynamic marketplace, we continually review opportunities to ensure we continue to deliver value to our customers and clients,” a Cigna spokeswoman said.
Date: August 27, 2019
Source: Forbes