- Cigna also announced in an earnings call that it would reverse plans to expand participation in ACA insurance markets to 10 states, according to a Reuters reported. The company had originally announced its intentions to expand into markets such as Chicago.
- Cigna profits fell 16.6% through the first three quarters of 2016 to $456 million, compared to $547 million during the same period last year, according to a November 3 statement.
- Total enrollment in Cigna plans through the first three quarters of 2016 increased 2.2% over the same period in 2015 from 14.8 million customers to 15.2 million.
The hits keep coming for Cigna, which has been hit with a series of blows since CMS limited its Medicare Advantage participation for compliance issues and deficiencies in appeals and grievances processes.
In September, Cigna announced it would not be able to correct the problems in time for open enrollment in Medicare Advantage plans for 2017. Last month, Cigna stocks fell after CMS lowered quality ratings on some of its Medicare plans for 2018. If these new CMS quality ratings go into effect, only 20% of patients in Cigna Medicare plans will be covered by a highly-rated plans.
A total of 519,000 patients were enrolled in Cigna Medicare plans at the end of the third quarter, down 5% from a year ago, the Hartford Courant reported. Additionally, its Medicare drug prescription business is down by about one-third from last year.
While CMS sanctions continue to cost Cigna, its attitude toward participation on the marketplace exchanges is similar to that of other large payers. As Cigna indicated in its earnings call, the exchanges haven’t been profitable for these payers.