The Cigna Group on Thursday outlined plans to exit the individual health insurance exchange market next year and review strategic options for a key services business.
The Cigna Group on Thursday outlined plans to exit the individual health insurance exchange market next year and review strategic options for a key services business.
The Bloomfield-based health insurer said it will stop offering plans on Affordable Care Act marketplaces after the 2026 plan year, citing the company’s continued effort to focus on core growth areas.
The decision will impact 369,000 health plan members in 11 states, according to Forbes.
Cigna does not currently participate in Connecticut’s individual insurance exchange. It withdrew from that market in 2018.
At the same time, Cigna said Thursday it has launched a strategic review of its EviCore unit, which provides prior authorization and utilization management services to health plans, as the industry faces growing pressure to streamline those processes, which have been criticized by providers and policymakers as burdensome and lacking transparency.
The company said it will explore ways to improve transparency, reduce administrative complexity and enhance efficiency, but did not provide a timeline for the review.
Brian Evanko, Cigna’s president and chief operating officer
who will take over as CEO on July 1, said during a morning earnings call that the moves reflect a “disciplined and consistent approach” toward aligning the company’s portfolio with its long-term strategy.
Under the plan to exit the ACA exchange, Evanko said there will be no immediate changes to coverage or provider networks and that members will be supported through the transition, including during open enrollment for 2027.
The announcement came as Cigna reported higher first-quarter profit and revenue, driven by growth in its Evernorth and healthcare businesses, and raised its full-year outlook.
Net income rose to $1.7 billion, or $6.26 per share, for the quarter ended March 31, up from $1.3 billion, or $4.85 per share, a year earlier. Revenue increased 5% to $68.5 billion.
The company said results were supported by growth in its Evernorth Health Services segment, including pharmacy benefit management and specialty pharmacy services, along with improved margins in its U.S. healthcare business. Specialty drugs and related services continue to be a key growth area.
Cigna now expects full-year adjusted earnings of at least $30.35 per share, slightly above its prior forecast.
The company also highlighted its ongoing efforts to streamline its portfolio. In recent years, Cigna has divested several businesses, including its group life and disability segment and its Medicare Advantage operations, moves executives said have reduced exposure to economic volatility and sharpened focus on higher-growth areas.
