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Cigna (CI) Eases Care Delivery With Prior Authorization Removal
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The Cigna Group’s (CI - Free Report) health benefits business, Cigna Healthcare, lifted the prior authorization (or precertification) requirement for around 25% of its medical services, which amounts to 600-plus services. It is worth mentioning that most of the Cigna unit’s customers will have to face prior authorization requirements on less than four per cent of medical services.
The removal of the above-mentioned requirement reflects Cigna’s efforts to provide a seamless health care experience for patients and clinicians in value-based care contracts. Prior authorization implies the process whereby health providers need to obtain the approval from the health plan of a patient prior to commencing with a treatment, procedure, or medication. This, in turn, ensures the safety of patients and makes the health care delivery a cost-effective one.
The facility also boosts patients’ adherence to evidence-based care standards. Despite numerous benefits, clinicians and health plans are often found grappling with administrative workload amid the prior authorization procedure. This might lead to delay in care delivery and can also lead to lower medication adherence by patients.
Considering the dire need to provide timely care, Cigna Healthcare has removed prior authorization on 1,100-plus medical services since 2020. The unit plans to relieve Medicare Advantage customers by removing prior authorization requirements for approximately another 500 medical services in the later part of 2023.
The latest initiative reflects Cigna’s sincere efforts to enhance value-based care and thereby, lure more clients to opt for Cigna Healthcare’s plans. This, in turn, is likely to fetch higher membership growth and the resultant benefit will be in the form of improved premiums, the most significant contributor to the top line of a health insurer like Cigna. Through the Cigna Healthcare unit, it serves customers of U.S. Commercial, U.S. Government and International Health businesses.
Total medical customers of CI increased 9.5% year over year as of Jun 30, 2023. The results of the Cigna Healthcare unit benefited on the back of the expanding customer base in the first half of 2023.
In addition to the latest initiative, Cigna recently undertook another effort to impart greater strength to the Cigna Healthcare business. It collaborated with the global digital-first health and well-being engagement company, Virgin Pulse, this month to provide an advanced digital platform. The platform can be accessed at myCigna by specific employer-sponsored plan clients of Cigna Healthcare from the very beginning of 2024 and is a means to bring enhanced whole-person wellbeing for around 11 million customers of Cigna.
Shares of Cigna have gained 15.7% in the past three months compared with the industry’s 1.6% growth. CI currently carries a Zacks Rank #3 (Hold).
LeMaitre Vascular’s earnings surpassed estimates in two of the last four quarters and missed the mark twice, the average surprise being 2.27%. The Zacks Consensus Estimate for LMAT’s 2023 earnings indicates a rise of 21.5%, while the same for revenues suggests an improvement of 20.9% from the respective year-ago actuals The consensus mark for LMAT’s 2023 earnings has moved 8.3% north in the past 30 days.
Alcon’s earnings beat estimates in three of the trailing four quarters and matched the mark once, the average surprise being 8.03%. The Zacks Consensus Estimate for ALC’s 2023 earnings indicates a rise of 21.4%, while the same for revenues suggests an improvement of 9% from the respective year-ago actuals. The consensus mark for ALC’s 2023 earnings has moved 3% north in the past 30 days.
InMode’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 3.85%. The Zacks Consensus Estimate for INMD’s 2023 earnings indicates a rise of 12.4%, while the same for revenues suggests an improvement of 19.1% from the respective year-ago actuals. The consensus mark for INMD’s 2023 earnings has moved 0.4% north in the past 60 days.
Shares of Alcon and InMode have gained 5.4% and 16.9%, respectively, in the past three months. However, the LeMaitre Vascular stock has lost 6.2% in the same time frame.
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Cigna (CI) Eases Care Delivery With Prior Authorization Removal
The Cigna Group’s (CI - Free Report) health benefits business, Cigna Healthcare, lifted the prior authorization (or precertification) requirement for around 25% of its medical services, which amounts to 600-plus services. It is worth mentioning that most of the Cigna unit’s customers will have to face prior authorization requirements on less than four per cent of medical services.
The removal of the above-mentioned requirement reflects Cigna’s efforts to provide a seamless health care experience for patients and clinicians in value-based care contracts. Prior authorization implies the process whereby health providers need to obtain the approval from the health plan of a patient prior to commencing with a treatment, procedure, or medication. This, in turn, ensures the safety of patients and makes the health care delivery a cost-effective one.
The facility also boosts patients’ adherence to evidence-based care standards.
Despite numerous benefits, clinicians and health plans are often found grappling with administrative workload amid the prior authorization procedure. This might lead to delay in care delivery and can also lead to lower medication adherence by patients.
Considering the dire need to provide timely care, Cigna Healthcare has removed prior authorization on 1,100-plus medical services since 2020. The unit plans to relieve Medicare Advantage customers by removing prior authorization requirements for approximately another 500 medical services in the later part of 2023.
The latest initiative reflects Cigna’s sincere efforts to enhance value-based care and thereby, lure more clients to opt for Cigna Healthcare’s plans. This, in turn, is likely to fetch higher membership growth and the resultant benefit will be in the form of improved premiums, the most significant contributor to the top line of a health insurer like Cigna. Through the Cigna Healthcare unit, it serves customers of U.S. Commercial, U.S. Government and International Health businesses.
Total medical customers of CI increased 9.5% year over year as of Jun 30, 2023. The results of the Cigna Healthcare unit benefited on the back of the expanding customer base in the first half of 2023.
In addition to the latest initiative, Cigna recently undertook another effort to impart greater strength to the Cigna Healthcare business. It collaborated with the global digital-first health and well-being engagement company, Virgin Pulse, this month to provide an advanced digital platform. The platform can be accessed at myCigna by specific employer-sponsored plan clients of Cigna Healthcare from the very beginning of 2024 and is a means to bring enhanced whole-person wellbeing for around 11 million customers of Cigna.
Shares of Cigna have gained 15.7% in the past three months compared with the industry’s 1.6% growth. CI currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the Medical space are LeMaitre Vascular, Inc. (LMAT - Free Report) , Alcon Inc. (ALC - Free Report) and InMode Ltd. (INMD - Free Report) . While LeMaitre Vascular currently sports a Zacks Rank #1 (Strong Buy), Alcon and InMode carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
LeMaitre Vascular’s earnings surpassed estimates in two of the last four quarters and missed the mark twice, the average surprise being 2.27%. The Zacks Consensus Estimate for LMAT’s 2023 earnings indicates a rise of 21.5%, while the same for revenues suggests an improvement of 20.9% from the respective year-ago actuals The consensus mark for LMAT’s 2023 earnings has moved 8.3% north in the past 30 days.
Alcon’s earnings beat estimates in three of the trailing four quarters and matched the mark once, the average surprise being 8.03%. The Zacks Consensus Estimate for ALC’s 2023 earnings indicates a rise of 21.4%, while the same for revenues suggests an improvement of 9% from the respective year-ago actuals. The consensus mark for ALC’s 2023 earnings has moved 3% north in the past 30 days.
InMode’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 3.85%. The Zacks Consensus Estimate for INMD’s 2023 earnings indicates a rise of 12.4%, while the same for revenues suggests an improvement of 19.1% from the respective year-ago actuals. The consensus mark for INMD’s 2023 earnings has moved 0.4% north in the past 60 days.
Shares of Alcon and InMode have gained 5.4% and 16.9%, respectively, in the past three months. However, the LeMaitre Vascular stock has lost 6.2% in the same time frame.