Cigna: Medicare transaction update for brokers

Medicare transaction update for brokers

As you know, Health Care Service Corporation has signed a definitive agreement to acquire Cigna's Medicare Advantage, Supplemental Benefits, Medicare Part D, and CareAllies businesses. Cigna expects the transaction to close in the first quarter of 2025, subject to regulatory approvals and other customary closing conditions.

As we approach this year's AEP, Cigna would like to provide you updates and FAQs as they understand that you and your customers may have questions about potential impacts. They want to assure you that they value your partnership and remain committed to growing and enhancing the Medicare offerings and service they bring to you and your customers following closing.

Cigna and HCSC's Medicare businesses remain separate companies until closing.

1. Medicare plans will continue to be offered and sold under each company's respective brand for the 2025 plan year. Cigna will continue to evaluate integration between both companies beyond the 2025 timeline and will share updates as they become available.
2. Since the transaction is expected to close in 2025, there will be no changes to Medicare Advantage plan benefits or premiums in plan year 2025 for either company (Medicare Supplement plans will follow state filings).
3. Cigna and HCSC's customers will remain enrolled in and covered by their existing 2025 plan upon the close of the transaction in 2025 for the duration of the 2025 plan year.
4. The Group Retiree Business will remain business as usual and Cigna and HCSC representatives respectively, will be in contact with you along the way for all of the exciting changes this brings to the market, for you and your clients.
5. Is it important to remember that immediately after the transaction closes, Cigna and HCSC will continue to operate as two separate plans. Post-close communications will provide specific details on how the companies will move forward.

Communications around Group Retiree Business will be provided in the coming months and include important information for you and your clients. For now, we will remain business as usual and your Cigna representatives respectively, will be in contact with you about all the exciting changes this brings to the market, for you and your clients.

Both Cigna and HCSC are committed to a smooth transition and ensuring the continuity of service for you, the valued broker partner, as well as continuity of service and access to care for customers following the close.

Cignaforbrokers.com contains an FAQ that will answer many questions that you, valued partners may have, as well as FAQs that can be used reactively if your Cigna customers have questions related to the acquisition. Cigna looks forward to keeping you informed and following up with additional updates as they become available.

Lastly, Cigna recognizes that there is great interest in this transaction and that incorrect information might be present in the marketplace. When you have a question about whether information you have heard is legitimate, please confirm with your Cigna contacts. They'll have the latest and accurate information to share with you.

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