The group is also in a legal battle with rival CVS Health over an executive’s non-compete agreement and has faced criticism for allegedly denying large batches of claims without human review.
Here’s 10 key stories to know about the Cigna Group from the first half of 2023:
- In June, a federal judge in St. Louis issued a preliminary injunction barring former Cigna executive Amy Bricker from working for CVS Health, while a lawsuit over her noncompete clause moves forward. Ms. Bricker served as president of Cigna’s pharmacy benefit manager, Express Scripts. She resigned Jan. 10 to become CVS’ executive vice president and chief product officer-consumer. She was set to begin her new position Feb. 20, but Cigna sued to block her from taking the new job.
- Cigna delayed implementation of a policy that would have required the submission of medical records when using modifier 25 for all evaluation and management claims billed with CPT codes 99212-99215 and a minor procedure. The American Medical Association and more than 100 physician and healthcare organizations had asked Cigna to reconsider the policy, saying it would add administrative costs and burden, thereby potentially affecting patients.
- Employers are hesitant to cover the cost of GLP-1 drugs for their employees, Cigna CEO David Cordani said. On an investor call, Mr. Cordani said the drugs are a positive step forward for the treatment of diabetes, but few employers have yet to embrace the pricey drugs for weight loss.
- The Cigna Group beat investor expectations and reported a 10 percent growth in membership year over year, according to the company’s first quarter earnings published in May. Total revenues in the first quarter were $46.5 billion, up 6 percent year over year.
- Cigna physicians deny large batches of claims without reviewing them first, a process that may save the company millions of dollars every year when members don’t appeal, ProPublica reported in March. A Cigna Healthcare spokesperson called the report a “mischaracterization of our process for accelerating payment of claims for routine, low-cost screenings.” Some state insurance commissioners and federal lawmakers have raised concerns with Cigna’s internal claims review process following the report.
- The Cigna Group is pushing for more of its employees to return to the office. In an email to employees obtained by the Hartford Courant, Mr. Cordani said the company’s ultimate goal is to bring the number of employees working in-office close to pre-pandemic levels.
- Mr. Cordani was paid $21 million in total compensation in 2022, according to regulatory filings. The company’s CEO-to-median-employee pay ratio in 2022 was 277-to-1.
- In February, Cigna rebranded as The Cigna Group and launched two brands under the new corporate umbrella. The health benefits segment, Cigna Healthcare, serves commercial, government and international members. Evernorth Health houses Cigna’s pharmacy, care delivery and benefits solutions.
- Cigna beat investor expectations and reported $1.2 billion in profit for the fourth quarter of 2022, according to its year-end earnings report. Total revenues in 2022 were $180.5 billion, up 4 percent year over year.
- In January, Wells Fargo analysts downgraded Cigna from “overweight” to “equal weight” rating, favoring the payer’s competitors.
