In one of the largest shifts in the Medicare Advantage landscape in recent years, Health Care Service Corporation has nearly quadrupled its Medicare Advantage membership after closing on a $3.3 billion acquisition of Cigna’s Medicare business in March.
The deal, first announced in January 2024, included Cigna’s Medicare Advantage, Part D, supplemental and CareAllies businesses. It grew HCSC’s Medicare membership from just over 1 million to 4.5 million, placing the company among the nation’s top 10 MA insurers.
“As you can imagine, taking a business with 6,000 employees and integrating them into HCSC is a monumental task. We’ve done a great job given that we’re six months in,” Stephen Harris, president of government markets at HCSC, told Becker’s. “We’re now right there with the largest national payers across the country, and we feel we’re well-positioned for long-term growth.”
The acquisition comes as many national players are retrenching in Medicare Advantage for 2026, citing federal cost-containment measures and rising utilization. HCSC is moving in the opposite direction, saying in September that it will launch MA plans in 948 counties across 30 states and D.C. for 2026. In the five states where the company operates Blue Cross Blue Shield affiliates — Illinois, Texas, Montana, New Mexico and Oklahoma — plans will continue under the BCBS brand, with four of those states also offering HealthSpring products. Outside the core states, Medicare plans will be sold under the HealthSpring brand originally launched by Cigna.
“The economics of the industry are changing,” Mr. Harris said. “There’s been reimbursement pressure, though the final rule provided some relief this year. But higher costs and utilization trends continue. The HMO model, with its PCP relationship, allows deeper value-based care arrangements with providers. That really lends itself to being a successful product offering in this economic climate.”
HCSC is taking a long-term view of the market, with the country’s Medicare-eligible population projected to surpass 70 million by 2030.
“In spite of near-term headwinds, the senior population will continue to grow,” Mr. Harris said. “It’s also a strategic priority for us to provide products and services at all stages of life, including Medicare Advantage. Long term, we’ve taken advantage of an opportunity in a market that will continue to grow and align with our mission.”
Mr. Harris also emphasized the company’s mutual status and compliance culture as differentiators in a highly competitive market.
“Being member-owned allows us to go deeper on whole-person care,” he said. “We invest in public health initiatives, behavioral health support, prevention, and healthy lifestyles, and we’re bringing that to a national scale. We have a strong culture of compliance, which benefits us in the current climate of audits and regulatory oversight.”
Between 2024 and 2025, total MA enrollment grew by 4%, down from 7% the year before. In 2025, 34 million Medicare beneficiaries, or 54% of those eligible, are enrolled in MA plans.
