Cigna isn't sweating the growth of the individual coverage health reimbursement arrangement market.
On an Aug. 1 call with investors, Brian Evanko, CEO of Cigna's insurance segment, said the market is "niche," though the company is "monitoring closely" any new developments.
ICHRAs allow employers to offer employees contributions to purchase an individual health plan rather than offering group insurance.
Mr. Evanko told investors the product is likely to be attractive to employers with under 50 employees, a market that is "financially immaterial" for Cigna.
"All that said, our individual exchange business offers us an opportunity to participate in the ICHRA space, should it gain more momentum," he said.
Some insurers are betting the coverage form, which was introduced in 2019, will take off.
In May, Oscar Health and Cigna said they would discontinue their co-branded Cigna + Oscar business, which provided group insurance plans to small businesses.
Oscar Health CEO Mark Bertolini said ICHRA was the way forward for the small group and middle market.
A Cigna spokesperson told Becker's the company was evaluating its options to serve the small group market in the future.
Centene, the largest individual marketplace insurer in the U.S., is also bullish on ICHRA. In September 2023, CEO Sarah London said she believes the individual marketplace will eventually become the dominant way consumers shop for health insurance.