Cigna closes $3.7B sale of Medicare business to HCSC (Healthcare Dive)

Cigna has officially sold its Medicare Advantage, prescription drug, and Medigap businesses — along with its CareAllies provider enablement unit — to Health Care Service Corporation (HCSC) for $3.7 billion. This expands HCSC’s reach to 26.5 million members and significantly increases its Medicare Advantage footprint. The deal enables Cigna to exit the financially pressured Medicare market and refocus on employer-sponsored insurance and health services through Evernorth. Despite criticism over the sale’s valuation, Cigna sees the divestiture as a strategic move toward leaner operations and improved earnings in 2025.