Cigna Corp. and Humana Inc., two of the largest publicly traded health insurers, said Friday they will team up to sell Medicare Advantage plans to employers that offer retiree coverage, The Associated Press reports.
Both say they plan to collaborate on a deal that provides Humana’s Medicare Advantage insurance to employers in Cigna’s customer base. Cigna, with operations in Bloomfield, will then manage the accounts.
The companies will split revenue from the deal, which they say blends strengths of both insurers. Humana, based in Louisville, Ky., offers dozens of Medicare Advantage plans nationwide. Cigna, which is headquartered in Philadelphia, offers coverage to employers in every state.
Medicare Advantage plans are privately run versions of the government’s Medicare program. They provide health coverage for the elderly and disabled. Subsidized by the government, the plans offer basic Medicare coverage topped with extras or premiums lower than standard Medicare rates.
Humana is the second-largest provider of Medicare Advantage plans, with an enrollment of 1.5 million people at the end of last year. It trails only UnitedHealth Group Inc.
Cigna is the fourth-largest publicly traded health insurer based on medical enrollment.
