Cigna is nearing a deal to sell its Medicare Advantage business to Health Care Service Corp., the Wall Street Journal reported Jan. 3.
The outlet previously reported both Elevance Health and HCSC were eyeing the business. People familiar with the deal told the Journal Cigna is in exclusive talks with HCSC to sell the Medicare Advantage business for between $3 and $4 billion.
Cigna had 599,000 Medicare Advantage members as of Sept. 30, a small portion of the company's 19 million insurance members.
Health Care Service Corp. operates Blue Cross Blue Shield affiliates in Illinois, Texas, New Mexico, Oklahoma and Montana. The company had more than 1 million Medicare members as of August 2023.
Reuters first reported Cigna was considering selling its Medicare Advantage business in November. Analysts said the sale could make a potential merger between Cigna and Humana, the second-largest Medicare Advantage insurer, more palatable to regulators.
The planned Cigna-Humana merger fell through in December, but Cigna continued to pursue a sale of its MA business. In a Dec. 10 statement, Cigna Group CEO David Cordani said the company will consider "bolt-on acquistions" and "value-enhancing divestitures."