CI

Cigna to sell Medicare business to Health Care Service for $3.3 bln - WSJ

Credit: REUTERS/BRENDAN MCDERMID

Adds details from report in paragraphs 3 and 4

Jan 31 (Reuters) - Cigna CI.N has agreed to sell its Medicare business to Health Care Service Corp for $3.3 billion in cash, the Wall Street Journal reported on Wednesday.

Health Care Service will buy Cigna's Medicare lines, including Medicare Advantage, Medicare supplement and Medicare drug plans, as well as a unit called CareAllies that works with physician groups and other healthcare providers, according to the report.

Cigna and Health Care Service did not immediately respond to requests for comment from Reuters.

The companies expect the deal to close in early 2025 subject to regulatory approvals, the report added.

Health Care Service holds a license to provide Blue Cross Blue Shield insurance plans in five U.S. states. It employs more than 27,000 people and 18.6 million members.

(Reporting by Sriparna Roy in Bengaluru; Editing by Sriraj Kalluvila)

((Sriparna.Roy@thomsonreuters.com))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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