Cigna has officially sealed the deal on the $3.3 billion sale of its Medicare business to Health Care Service Corporation.
HCSC acquired Cigna’s Medicare Advantage, Part D, supplemental benefits and CareAllies units as part of the deal.
While it will no longer operate the Medicare unit directly, Cigna said it will continue to provide pharmacy benefit management and other services through its Evernorth division, as part of an agreement with HCSC.
“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,” Cigna Group CEO David Cordani said in a press release.
Cigna said that it plans to deploy the capital from the sale across multiple priorities, though the majority is likely to go toward stock repurchases, according to the announcement.
The two parties said they do not expect the deal to disrupt coverage for existing members, providers or brokers.
“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 HCSC CEO Maurice Smith. “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,” Smith said.