The Cigna Group is “exploring strategic alternatives” for Evernorth’s EviCore, a subsidiary that works with health plans on utilization management, including prior authorization.
During an April 30 earnings call, incoming CEO Brian Evanko clarified that a transaction is not currently taking place. Cigna is considering partnerships or “a combination with other complementary industry participants.”
“As our industry continues to make strong progress on standardizing and automating prior authorization services, we have decided to initiate a strategic review of alternatives for EviCore,” he said. “We will explore options to continue delivering the highest level of service for health plans in the industry at large while maximizing long-term value.”
Mr. Evanko said scalability considerations, management focus and continued progress with prior authorization processes — such as an industrywide commitment in 2025 — were factors contributing to this assessment. He pointed to a recent announcement wherein Cigna, among other insurers, agreed to go a step further in their pledge and standardize electronic prior authorizations for common services.
“All these prior authorization enhancements through standardization and technological progress open new doors for our EviCore business,” Mr. Evanko said. “This was a proactive step we took to shape the portfolio.”
Earlier in the call, Mr. Evanko said Cigna would be exiting the ACA market in 2027, as well. The news follows Cigna’s sale of its Medicare Advantage products to Health Care Service Corp last year.
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