The growth of Cigna’s healthcare subsidiary boosted net income 24% to $6.7 billion last year, health insurance reported Friday.
Revenue is up 4% to $180.5 billion in 2022, according to Cigna’s financial statements. The company’s Evernorth operations, which include pharmacy benefit management, specialty pharmacies, and care delivery, generated $140.3 billion last year, up 6% from 2021.
Evernorth contributed $2.5 billion to the acquisition of Summit Health-CityMD, a subsidiary of the Walgreens Boots Alliance, which has created an extensive network of primary care providers, specialized in department and emergency.
“We continue to invest large amounts of money in areas like our Evernorth care platform to enable things like VillageMD along with our specialty pharmaceutical business to continue to grow. at a very compelling pace,” Cigna Chief Financial Officer Brian Evanko told investors in a press conference. Friday briefing.
Insurance membership grew 5.4% to 18 million in 2022, mainly due to commercial customers. Enrollment for government-funded insurance fell slightly, in part because Cigna sold its Medicaid operations in Texas to Molina Healthcare for $60 million last January.
Lower costs of COVID-19 care and “effective implementation of pricing and affordability initiatives in the U.S. commercial business” have resulted in higher rates of medical loss for the United States. Cigna fell from 84% in 2021 to 81.7% last year, the company reported.
Cigna expects Medicare Advantage member growth to be in the high single digits this year. CEO David Cordani said the program continues to present a significant growth opportunity.
On Wednesday, the Centers for Medicare and Medicaid Services announced that Medicare Advantage rates will increase by 2.09% by 2024. If the agency implements that policy as it proposes, it will create a “business disparity.” revenue” prompts Cigna to take advantage of its value-based payment, Cordani said, which covers about three-quarters of Medicare Advantage enrollees.
“The original quote was issued with lower or slightly weaker sales. We will wait for the final quote letter to be issued regarding that,” Cordani said.
