Although its merger with Humana has fallen through, Cigna is still considering the sale of its Medicare Advantage business, The Wall Street Journal reported Dec. 10.
The deal could bring in several billion dollars in a divestment but could leave Cigna shut out of a growing part of the insurance business that is favored by investors, according to the report. The size and scale of Cigna's Medicare Advantage business has long trailed its top competitors.
Bloomberg reported Nov. 29 that Health Care Service Corp. is among the potential buyers of the Medicare Advantage business. Chicago-based HCSC is the parent company of BCBS Illinois, Texas, New Mexico, Montana and Oklahoma.
The planned merger between Cigna and Humana was called off following a disagreement over price and other financial terms. Cigna is planning an additional $10 billion of stock buybacks, raising its total planned repurchases to $11.3 billion, and considering "bolt-on acquisitions" and "value-enhancing divestitures."