Cigna Sells Medicare Assets to Health Care Service Corporation for $3.7 Billion
Cigna has announced the sale of its Medicare Advantage, Cigna Supplemental Benefits, Medicare Part D and CareAllies businesses to Health Care Service Corporation (HCSC) for a total transaction value of approximately $3.7 billion. HCSC is the United States’ largest customer-owned health insurer with nearly 17.5 million members in its health plans in Illinois, Montana, New Mexico, Oklahoma and Texas. HCSC was formerly known as Hospital Service Corporation and changed its name to Health Care Service Corporation in 1975. Centerview Partners LLC is acting as a financial advisor to Cigna. Morgan Stanley & Co. LLC provided additional financial advice. Wachtell, Lipton, Rosen & Katz... Read More »
Medical Mutual Acquires Paramount Health from ProMedica
Medical Mutual announced on January 29 that it entered into an agreement to acquire Paramount Health Care from ProMedica. Paramount Health Care is a health insurance company located in Ohio. Established in 1988, Paramount offers insurance products to individuals and employers across six Midwest states and serves more than 77,000 health plan members and 308,000 dental plan members. Medical Mutual is one of the largest health insurance companies in Ohio, serving more than 1.6 million members with group and personal health insurance plans, and third-party administrative services to self-insured group customers. ProMedica is a not-for-profit health and well-being organization... Read More »
Humana Takes Hit in 2024 Amid Surge in Medical Costs
Humana announced its earnings and revenue for the fourth quarter of 2023 on January 25, 2024. The company reported $106.4 billion in revenue and $2.5 billion in profit for the full year 2023. While revenue grew about 15% compared to 2022, when it reported $92.9 billion, profits declined slightly year-over-year from $2.8 billion. The health insurer is bracing for an “unprecedented” surge in medical costs, impacting its earnings throughout 2024 and also putting its 2025 profit target of $37 per share out of reach. Medical costs for health insurers were elevated during 2023, and picked up even more during Q4 as people, especially older adults, returned to the hospitals... Read More »
Elevance Health Q4 2023 Earnings Snapshot
Elevance Health announced its earnings and revenue for the fourth quarter of 2023 on January 24, 2024. The health insurer and healthcare-services provider, formerly known as Anthem, posted a profit of $856 million, or $3.63 a share, compared with $865 million, or $3.59 a share, during Q4 2022. The company also announced $42.5 billion in revenue for Q4 2023, a 7% increase from the $39.9 billion in revenue reported for the prior year quarter. For the full year 2023, Elevance Health brought in $171.3 billion in revenue and $6 billion in profit. This compares to $156.6 billion in revenue and $5.9 billion in profit for 2022. Operating revenue for the full year was $148.6 billion,... Read More »
Deal Update: Molina Healthcare Amends Terms for Medicare Business Acquisition
Molina Healthcare, Inc. has announced that it has amended its purchase agreement for the acquisition of Bright HealthCare’s California Medicare business. The purchase price for the transaction was previously announced to be $510 million but has been reduced to approximately $425 million, according to a December 18 press release from Molina Healthcare. The transaction was originally announced in June 2023. Bright HealthCare is an American health insurance company based in Minneapolis, Minnesota. The business being sold expects a 2023 premium revenue of $1.8 billion, according to the Molina press release. Molina Healthcare, a Fortune 500 company, provides managed healthcare services under... Read More »Schedule a demo
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