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The Cigna Group’s (CI - Free Report) health benefits business, Cigna Healthcare, announced expansion endeavors for growth of its Medicare Advantage (MA) business in 2024, which denotes the fifth consecutive year of such geographic extension. Its shares declined 1.1% on Oct 3, replicating declines in broader markets.
Next year, Cigna aims to introduce its MA plans across 25 counties, which will subsequently mark the health insurer’s foray into the state of Nevada for the first time. The recent announcement will expand the overall reach of CI’s MA business to 603 counties, spread across 29 states, and the District of Columbia.
Cigna's 2024 MA plans have been infused with affordability, varied choices and stacked with multiple benefits in order to address a diversified set of health needs of older adults. The plans can be availed by customers during the Annual Enrollment Period, which will run between Oct 15, 2023, and Dec 7, 2023. This makes the latest move of CI a time opportune one.
A $0 premium plan will be offered in each of Cigna’s service areas. The majority of the markets will also extend a plan that provides a rebate on the customer’s Medicare Part B monthly premium. Additionally, the plans are bundled with dental, vision and hearing benefits. The members will enjoy access to virtual care tools, which will equip them with advance care planning, keep a track of real-time health and claims data as well as address behavioral health, dermatology and speech therapy needs. The Cigna Healthy Today card integrates benefits and incentives under a single umbrella and can be availed by all customers at 62,000-plus participating U.S. retailers.
Apart from MA plans, Cigna also offers a diversified array of other plans as part of its recent expansion endeavor. Its Medicare Supplement plans can be availed across 48 states and the District of Columbia. It will also distribute three standalone Prescription Drug Plans in 50 states, the District of Columbia and Puerto Rico. The reach of its dually eligible special need plans, meant for people qualifying for both Medicare and Medicaid, will be extended to 68 new counties in 2024.
Cigna Saver Rx, Cigna Secure Rx and Cigna Extra Rx plans are also available to support a wider array of budget, health and lifestyle needs of individuals. Its Courage MA only plan, meant to benefit U.S. military veterans, can be availed across 17 states.
With the help of such lucrative plan features, the customer base of Cigna is expected to witness an inevitable uptick in the days ahead. The latest plan expansions hold the potential to welcome 2.3 million members under its customer base in 2024.
An expanding customer base fetches higher premiums, which are the most significant contributor to a health insurer’s top line. Apart from membership growth, the Medicare business of CI continues to be driven by constant product expansions and new collaborations or contract extensions with renowned healthcare systems. Also, an aging U.S. population may sustain the solid demand for the health insurer’s MA plans in the days ahead.
Other health insurers, such as UnitedHealth Group Incorporated (UNH - Free Report) , Humana Inc. (HUM - Free Report) and Elevance Health, Inc. (ELV - Free Report) , declared their 2024 expansion endeavors.
UnitedHealth Group plans to expand its coverage area and reach 96% of all Medicare customers with its 2024 Individual MA Plan. UNH aims to add 700,000 more people to its MA plans across 110 new counties and 2.7 million more individuals to its Chronic Special Needs Plans.
Humana aims to introduce its MA plans across 39 U.S. counties. Overall, its Medicare HMO offerings are targeted to reach 140 counties in 2024, while its Medicare LPPO plans are likely to be available across 80 counties in the same time frame. Therefore, HUM plans to welcome 762,000 Medicare-eligible individuals under its customer base. Humana USAA Honor plans, designed to benefit military veterans, are likely to reach 84 new counties in 2024.
Elevance Health aims to introduce its MA plans across 91 counties in 2024 and serve nearly 93% of individuals eligible for Medicare in the targeted states and territories. ELV’s affiliated health plans cater to 2.9 million-plus Medicare members, which comprise around 2.1 million MA members, thereby substantiating the robust MA network of the health insurer.
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Cigna (CI) Unveils 2024 Expansion Plans, Eyes Membership Growth
The Cigna Group’s (CI - Free Report) health benefits business, Cigna Healthcare, announced expansion endeavors for growth of its Medicare Advantage (MA) business in 2024, which denotes the fifth consecutive year of such geographic extension. Its shares declined 1.1% on Oct 3, replicating declines in broader markets.
Next year, Cigna aims to introduce its MA plans across 25 counties, which will subsequently mark the health insurer’s foray into the state of Nevada for the first time. The recent announcement will expand the overall reach of CI’s MA business to 603 counties, spread across 29 states, and the District of Columbia.
Cigna's 2024 MA plans have been infused with affordability, varied choices and stacked with multiple benefits in order to address a diversified set of health needs of older adults. The plans can be availed by customers during the Annual Enrollment Period, which will run between Oct 15, 2023, and Dec 7, 2023. This makes the latest move of CI a time opportune one.
A $0 premium plan will be offered in each of Cigna’s service areas. The majority of the markets will also extend a plan that provides a rebate on the customer’s Medicare Part B monthly premium. Additionally, the plans are bundled with dental, vision and hearing benefits. The members will enjoy access to virtual care tools, which will equip them with advance care planning, keep a track of real-time health and claims data as well as address behavioral health, dermatology and speech therapy needs. The Cigna Healthy Today card integrates benefits and incentives under a single umbrella and can be availed by all customers at 62,000-plus participating U.S. retailers.
Apart from MA plans, Cigna also offers a diversified array of other plans as part of its recent expansion endeavor. Its Medicare Supplement plans can be availed across 48 states and the District of Columbia. It will also distribute three standalone Prescription Drug Plans in 50 states, the District of Columbia and Puerto Rico. The reach of its dually eligible special need plans, meant for people qualifying for both Medicare and Medicaid, will be extended to 68 new counties in 2024.
Cigna Saver Rx, Cigna Secure Rx and Cigna Extra Rx plans are also available to support a wider array of budget, health and lifestyle needs of individuals. Its Courage MA only plan, meant to benefit U.S. military veterans, can be availed across 17 states.
With the help of such lucrative plan features, the customer base of Cigna is expected to witness an inevitable uptick in the days ahead. The latest plan expansions hold the potential to welcome 2.3 million members under its customer base in 2024.
An expanding customer base fetches higher premiums, which are the most significant contributor to a health insurer’s top line. Apart from membership growth, the Medicare business of CI continues to be driven by constant product expansions and new collaborations or contract extensions with renowned healthcare systems. Also, an aging U.S. population may sustain the solid demand for the health insurer’s MA plans in the days ahead.
Shares of Cigna have gained 6.9% in the past six months compared with the industry’s 2.1% growth. CI currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Other health insurers, such as UnitedHealth Group Incorporated (UNH - Free Report) , Humana Inc. (HUM - Free Report) and Elevance Health, Inc. (ELV - Free Report) , declared their 2024 expansion endeavors.
UnitedHealth Group plans to expand its coverage area and reach 96% of all Medicare customers with its 2024 Individual MA Plan. UNH aims to add 700,000 more people to its MA plans across 110 new counties and 2.7 million more individuals to its Chronic Special Needs Plans.
Humana aims to introduce its MA plans across 39 U.S. counties. Overall, its Medicare HMO offerings are targeted to reach 140 counties in 2024, while its Medicare LPPO plans are likely to be available across 80 counties in the same time frame. Therefore, HUM plans to welcome 762,000 Medicare-eligible individuals under its customer base. Humana USAA Honor plans, designed to benefit military veterans, are likely to reach 84 new counties in 2024.
Elevance Health aims to introduce its MA plans across 91 counties in 2024 and serve nearly 93% of individuals eligible for Medicare in the targeted states and territories. ELV’s affiliated health plans cater to 2.9 million-plus Medicare members, which comprise around 2.1 million MA members, thereby substantiating the robust MA network of the health insurer.