Cigna Profits Hit $1.2 Billion On New Health Plan Customers And Evernorth Growth

Cigna Profits Hit .2 Billion On New Health Plan Customers And Evernorth Growth

Cigna reported nearly $1.2 billion in quarterly profits thanks to rising commercial health plan enrollment and continued growth of the company’s Evernorth health services business.

Evernorth, which includes the pharmacy benefit management company Cigna bought with its 2018 acquisition of Express Scripts, helped boost the company’s total revenue in the first quarter by more than 7% to $44 billion compared to $40.9 billion in the year-ago period, the company said Friday in its earnings report. Meanwhile, Cigna’s net income was $1.18 billion, or $3.68 per share, compared with $1.16 billion, or $3.30 per share, for first quarter 2021.

Cigna’s diversified portfolio, which includes commercial and government lines of health insurance as well as healthcare services including the pharmacy benefit management company under the Evernorth umbrella, are helping to grow the company as was the intention when the health insurer bought Express Scripts.

“We’ve had a strong start to the year as we advance our growth strategy and support the health and well-being of our clients and customers,” Cigna chairman and chief executive David Cordani said in a statement accompanying the earnings report. “We’re taking decisive steps forward with innovation, new partnerships and re-investing in our company so we can achieve greater impact for the customers and communities we’re privileged to serve.”

Cigna’s profits and growing customer base contributed to the company’s decision to raise its financial outlook for the rest of 2022.

Total medical customers in Cigna’s health plans grew to nearly 17.8 million, an increase of 698,000 year to date driven by a jump in commercially insured customers. Meanwhile, Cigna said total pharmacy customers grew 6% to 107.4 million compared to 101 million in the year-ago quarter, driven by strong retention of business as well as new sales, the company said.

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