Cigna would like to share some information regarding an important The Cigna Group (“Cigna”) strategic initiative designed to better serve the Medicare population, which is slated to begin this month, March 2024.
Cigna Healthcare Supplemental Benefits (CSB) will transfer one of their Cigna affiliates’ Medicare-specific business to another Cigna affiliate that exclusively serves Medicare populations. This initiative will impact policyholders and broker communities.
Specifically, Cigna Health and Life Insurance Company (CHLIC) will be replaced by Medco Containment Life Insurance Company (MCLIC) as the insurer of their Medicare Supplement insurance policies. Accordingly, we will transfer policyholders who consent to the transition from CHLIC to MCLIC. MCLIC will contain rights, features, services, and obligations identical to those of CHLIC. There will be no interruption to service or provider availability.
For simple and consistent reference, Cigna will call this process the "CHLIC transition" or "transition" in communications and materials directed to policyholders (our mutual customers) and to you.
For the transition to occur, Cigna must notify CHLIC Medicare Supplement insurance policyholders and obtain their consent to transfer their policy to MCLIC. This impacts policyholders in states where CHLIC is or was previously sold.
Accordingly, this is a lengthy process - so you and the policyholders may see communications on this initiative over the course of a year or more.
Cigna will mail Notice of Transfer packets to policyholders, providing information about and how to consent to the transfer.
Consent requirements vary by state. You will receive notice emails detailing each state’s requirements in advance of Notice of Transfer packet mailings to policyholders. Additionally, Cigna will post sample state Notice of Transfer packets on a CHLIC Transition Broker Resource page (link provided below), as well as a concise table of consent requirements for each state.
Please note:
When a policyholder’s consent response is received, Cigna will store it and move their policy into a transfer queue. Once a policy has transferred from CHLIC to MCLIC, the policyholder will receive a Certificate of Assumption as a record of the transfer, and a new MCLIC ID card.
Consent processing times may vary - watch for updates as referenced below.
Regarding existing CHLIC policies:
For CHLIC policyholders who reside in states where CHLIC is or was previously sold, their policies will transfer to MCLIC once we have their consent on record. Cigna will maintain all Agent of Record information with those policies, so this aspect of the CHLIC transition should be of minimal impact to you.
Regarding new sales:
To assist you during this process, Cigna will provide the following:
Cigna understands that a change of this nature and scope can bring up many questions and concerns and the goal is to make this transition as simple as possible for you and customers. Please reach out to the ARC with any questions you have throughout the transition
CHLIC transition broker information resource page
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