Cigna Profits Slow Thanks in Part to Government Action

The government in January told Cigna to stop enrolling beneficiaries in its Medicare Advantage plan, and the health plan’s profits declined partly because of that. It cannot sign up MA beneficiaries in the current enrollment period. Cigna earned $456 million in this year’s third quarter ($1.76 a share). A year ago Cigna earned $547 million in the third quarter ($2.10 a share), according to the Wall Street Journal. There were other problems, as well, including a $71 million charge related to the proposed Cigna-Anthem merger.

“But Cigna said it had strong performance in its core employer business, with better-than-expected medical cost trend,” the newspaper reports. “The insurer also saw improvement in its group disability and life segments compared with the previous quarter, when those businesses hurt its results.”

Source: Wall Street Journal