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Cigna's (CI) Unit Brings New Plan for Globally Mobile Seniors

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The Cigna Group (CI - Free Report) recently announced that its International Health business of the Cigna Healthcare segment launched a new health benefits plan for globally mobile adults aged 60 and above. The product, named Cigna Healthcare Global Plan for Seniors, is expected to address the rising demand in the market.

Advancements in science, nutrition and technologies are supporting constant growth in the senior population worldwide. People above 65 years are projected to be one of the fastest-growing segments of the nation's population alone, per the U.S. Census Bureau. This change in demographics and the rising incidence of diseases are boosting the demand for customized health benefits plans. As such, the new product from Cigna Healthcare is likely to face significant demand in the global market.

Cigna Healthcare’s research projected that the market for international health coverage for seniors will extend to 450,000 individuals by the next two years. The latest move reflects Cigna’s ability to better understand the market and launch products accordingly, which generates high premiums and boosts its memberships. Cigna expects its total medical customer growth to be a minimum of 1,400,000 this year.

The new plan covers a range of health, well-being and preventive care services. It also includes vaccinations, essential coverage for hospital stays and mental health treatments. The new product can provide pharmacy and medical care for arthritis, joint or back pain, hypertension, glaucoma, type 2 diabetes and others. Its key benefits, among many, incorporate full cancer care support.

Price Performance

Shares of Cigna have risen 5.1% in the past three months against the 2.9% fall of the industry it belongs to.

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Zacks Rank and Key Picks

Cigna currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the medical space are HCA Healthcare, Inc. (HCA - Free Report) , Select Medical Holdings Corporation (SEM - Free Report) and Atai Life Sciences N.V. (ATAI - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for HCA Healthcare’s 2023 bottom line suggests a 9.2% increase from the prior-year levels. HCA has witnessed one upward estimate revision in the past week against none in the opposite direction. It beat earnings estimates in three of the last four quarters and missed once, with the average surprise being 5.4%.

The Zacks Consensus Estimate for Select Medical’s 2023 earnings indicates a 56.9% year-over-year increase to $1.93 per share. It has witnessed one upward estimate revision over the past month against no movement in the opposite direction. The consensus mark for SEM’s 2023 revenues indicates 4.2% growth from a year ago.

The Zacks Consensus Estimate for Atai Life Sciences’ current-year earnings implies a 16.3% improvement from the year-ago reported figure. It has witnessed four upward estimate revisions over the past month against no movement in the opposite direction. ATAI beat earnings estimates in two of the last four quarters, met once and missed on one occasion.

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