Bloomfield-based Cigna has been notified by the federal government that its ability to enroll new customers for its Cigna Medicare Advantage and Standalone Prescription Drug Plan contracts has been suspended. The insurer was cited for a long history of non-compliance.
Its stock was down .95 percent to $139.18 shortly before 1:30.
The Centers for Medicare & Medicaid Services suspended Cigna from marketing the plans and enrolling new customers as of 11:59 p.m. yesterday. The company said in its filing the suspension does not impact current Cigna Medicare Advantage and Medicare Part D enrollees’ benefits or plans.
According to CMS, Cigna has had a longstanding history of non-compliance with CMS requirements. Cigna has received numerous notices of non-compliance, warning letters, and corrective action plans over the past several years. A number of these notices were for the same violations discovered during an audit, demonstrating that Cigna has not corrected issues of noncompliance, CMS said in its suspension letter to the company. The audit covered operations between the May 2015 and August 2015 timeframe, according to a Cigna statement.
A CMS spokesperson said the sanctions are in place until Cigna submits and CMS accepts a plan of correction to solve the situation. The CMS letter to Cigna said, in part, the suspension was necessary because it has determined that Cigna’s conduct poses a serious threat to the health and safety of Medicare beneficiaries.
According to the CMS letter sent to Cigna, problems were found to be widespread and systemic. “Violations resulted in enrollees experiencing delays or denials in receiving medical services and prescription drugs, and increased out of pocket costs for medical services and prescription drugs,” the CMS correspondence said.
“The findings in the audit are unacceptable and will be addressed in full partnership with CMS,” said Herb Fritch, president of Cigna-HealthSpring, in a statement. “We have internal quality review processes in place that identified some of the areas in advance of the audit findings and we have already started working to remedy them. In other instances, we will implement the changes as quickly as possible to emerge a stronger organization further dedicated to those we serve.”
The Centers for Medicare & Medicaid Services imposed sanctions due to deficiencies discovered with Cigna’s operations of its Parts C and D appeals and grievances, Part D formulary and benefit administration, and compliance program, according to the company’s SEC filing. Cigna said it is working to resolve these matters as quickly as possible and is cooperating fully with CMS on its review, the company said.