Cigna Reports Good Financial News
The Cigna Group reported $1.3 billion in profit for the first quarter of 2025, bucking the trends that have hurt other companies in the insurance industry. Its earnings surpassed Wall Street’s expectations. The company posted a $277 million loss in the prior year quarter. Cigna reported $65.5 billion. That’s up from $57.3 billion for Q1 2024.
Cigna faced less pressure around medical costs, reporting a medical loss ratio of 82.2% – up from 79.9% a year ago.
Cigna just sold its Medicare assets to Health Care Service Corporation (HCSC).
It also announced two new GLP-1 programs.
In other news, insurtech Alignment Healthcare exceeded its high-end guidance for the first quarter. The company posted $926.9 million in revenue, up 47.5% year over year. Adjusted gross profit came in at $107.2 million. Alignment still posted a net loss for the quarter at $9.4 million.
Additional articles: https://www.fiercehealthcare.com/payers/cigna-bucks-medical-cost-trend-posts-13b-q1-profit and https://www.fiercehealthcare.com/payers/alignment-healthcare-revenue-grows-927m-hires-former-multiplan-cfo and https://www.healthcaredive.com/news/cigna-evernorth-glp1-support-programs-enreachrx-enguide-q1-2025/746967/
#alignmenthealthcare #cigna #healthplans #medicareadvantage #employergroup #commercial #margins
Trump Budget Has Major Cuts In Healthcare
The Trump White House’s proposed budget released today outlines policy priorities largely in line with those in a leaked draft budget. It funds the Department of Health and Human Services (HHS) at $93.8 billion, a 26.2% decrease from FY 2025. The budget would cut $17.97 billion from the National Institutes of Health.
Additional articles: https://www.fiercehealthcare.com/regulatory/president-trump-outlines-health-agency-cuts-annual-fy26-budget-proposal and https://thehill.com/business/budget/5280416-trump-budget-defense-nondefense/ and https://thehill.com/policy/healthcare/5279939-trumps-budget-proposes-steep-cuts-to-nih-health-funding/ and https://thehill.com/homenews/senate/5279900-susan-collins-trump-budget/
(Some articles may require a subscription.)
#ffy2026 #spending #trump #healthcare
Aetna Retreat From Exchanges Not Worrisome Sign
Experts say that Aetna’s decision to exit the Exchanges is not an omen for the future of the Exchanges. They say the Exchanges can adjust to the exit of Aetna in 2026. The insurer decided to exit to clean up its financial woes. It had a 96% medical expense in the Exchanges. Aetna has about 1 million of over 24 million in the Exchanges.
I tend to agree with the experts’ assessment, but the exit could have major consumer impact in several states. The expiration of the enhanced premium subsidies will have the biggest impact, with a loss of enrollment in the millions, more exits, and anticipated surges in premiums.
(Article may require a subscription.)
#exchanges #obamacare #aca #cvsaetna
https://www.modernhealthcare.com/insurance/aetna-exchange-aca-market-exit
Trump Wants MFN Drug Pricing For Medicaid
The Trump administration is urging congressional Republicans to include a most-favored-nation program for drug prices in Medicaid. This would ensure Medicaid receives the lowest price paid in other developed countries. Others argue he should do this in Medicare, which is something Trump entertained in his first term. It still could come.
(Article may require a subscription.)
#drugpricing #branddrugmakers
https://insidehealthpolicy.com/daily-news/trump-revives-most-favored-nation-plan-only-medicaid
— Marc S. Ryan
