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Cigna (CI) & Oscar Health Boost Presence in Philadelphia

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Cigna Corporation (CI - Free Report) recently announced that it intends to expand the reach of its small business plans, which are in partnership with Oscar Health, Inc. (OSCR - Free Report) . Cigna expects the move to boost its presence in the Philadelphia metropolitan area. The coverage will be offered in Bucks, Delaware, Chester, Montgomery, and Philadelphia counties.

The expansion is expected to come on line on Jan 1, 2023, after receiving a pending regulatory nod. The move is expected to enhance Cigna’s partnership with Oscar Health, which is built on a full stack technology platform, the first of its kind. The plans are likely to target businesses with employees in the range of 1-50. The Cigna + Oscar plans recently topped a major milestone of 50,000 members.

The latest move by CI and OSCR will likely enable the partnership to build on its momentum and expand its footprint in the Philadelphia region. It will enable small businesses in the region to provide access to quality care for their employees at an affordable rate. They will also have access to a massive nationwide network.

The health plans are expected to incorporate low-cost prescription coverage and behavioral health support. The risks associated with the plans offered will be shared equally by the two companies. Cigna focuses on buyouts and strategic alliances to boost its footprint and grow members. Its diversified product portfolio, wide agent network and superior service are major positives. CI estimates total 2022 medical customer growth of at least 8,00,000, up from the prior view of “at least 7,25,000.”

Price Performance

Shares of Cigna have increased 37.9% in the past year compared with a 30.3% rise in the industry it belongs to.

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Zacks Rank & Other Key Picks

Cigna currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader medical space are Molina Healthcare, Inc. (MOH - Free Report) and Elevance Health Inc. (ELV - Free Report) , both carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Molina Healthcare’s 2022 bottom line indicates a 29.6% increase from the prior year’s reported number. MOH beat earnings estimates in each of the past four quarters, with the average being 3.2%.

The Zacks Consensus Estimate for Elevance’s 2022 bottom line indicates 10.5% year-over-year growth. ELV beat earnings estimates in each of the past four quarters, with the average being 4.3%.

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