Cigna is launching a modernization and productivity initiative, expected to bring in $3 billion in savings by 2030.
During the company’s Sept. 30 investor day call, CFO Ann Dennison said the multiyear program focuses on automating workflows, ensuring a future-ready workforce and optimizing supplier and vendor management. According to a news release from the same day, Cigna employees will have access to AI-enabled insights and tools.
“Technology and AI will accelerate these efforts,” Ms. Dennison said on the call. “It will help improve productivity, lower our cost to serve, create operating leverage and provide additional capacity for us to invest in growth opportunities.”
President and CEO Brian Evanko said some of the savings will be reinvested in the business and some will support the adjusted earnings-per-share growth goal of 10% to 14% through 2030.
Here are three other things to know from the call:
- Mr. Evanko described margins as “somewhat depressed” in the pharmacy benefit services business. The company is continuing to back its rebate-free, fee-based Signature pharmacy benefit manager model, which Cigna plans to scale to 50% of eligible lives by the end of 2028.
- Cigna recently announced a partnership with OpenAI, beginning with a focus on oncology. Cigna Chief Medical Officer Amy Flaster, MD, said a cohort of oncology nurses are leveraging AI-enabled summaries of patients’ care journeys before engaging with them.
- Matt Perlberg, executive vice president of customer innovation and president of Evernorth Pharmacy and Care Delivery, said the specialty and care services business will drive more than 40% of Cigna’s overall earnings by the end of 2030.
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