Cigna Reports Strong Financial News
The Cigna Group reported among the strongest news of any major health plan today. It posted a $1.9 billion profit in Q3, up from $739 million during the same period last year. Revenue reached $69.7 billion, a 9.5% increase year over year. Adjusted income from operations was $2.1 billion, less than 1% lower than third-quarter 2024. Its services entity Evernorth grew tremendously, including specialty pharmacy growth. Insurer Cigna Healthcare generated $10.8 billion in adjusted revenue, down 18.3% year over year – largely due to the sale of its Medicare Advantage line. Excluding that, adjusted revenues for the insurance business were up 6% compared to Q3 2024. The medical loss ratio reached 84.8%, a 2.4% increase year over year.
Cigna executives said the company is expecting pressure on its margins with its announcement that it will begin phasing out rebates.
In related news, if Express Scripts and other pharmacy benefit managers (PBMs) thought moving to phaseout rebates would stop regulatory and congressional action, they were wrong. Lawmakers applauded the move but say they will push for passage of their reforms.
Additional articles: https://www.beckerspayer.com/financial/cigna-reports-1-9b-q3-profit/ and https://www.modernhealthcare.com/politics-regulation/mh-pbm-legislation-bills-express-scripts-rebates/ and https://www.fiercehealthcare.com/payers/cigna-reaffirms-2025-outlook-posts-19b-profit-q3 and https://www.modernhealthcare.com/insurance/mh-cigna-earnings-evernorth-health-express-scripts/
(Some articles may require a subscription.)
#healthplans #cigna #margins
https://www.healthcaredive.com/news/cigna-pharmacy-model-lower-earnings-q3-2025/804156
Government Shutdown Ending?
As repercussions of the government shutdown begin to mount, Senate Republicans and Democrats are trying to hammer out a proposal to end the impasse. Some centrist Democrats are arguing that their party has successfully highlighted rising healthcare but it’s time to pass a funding bill.
And as the Exchange open enrollment begins November 1, more light is shining on premium hikes. Premiums were posted on the Exchange websites. Healthcare policy group KFF finds that the average increase in premiums for benchmark Silver plans will be 26%. But those with subsidized coverage this year (about 90%) will see an average increase of 114% with the expiration of enhanced subsidies. The Congressional Budget Office has estimated that about 2.2 million in 2026 fewer people and about 3.5 million fewer people will have health coverage in 2027 if the enhanced subsidies expire. Americans 60 years and older with an income of $65,000 will pay $920 more a month in 2026. Older Americans are the hardest hit.
Additional articles: https://thehill.com/homenews/senate/5580101-democrats-republicans-negotiate-aca-subsidies/ and https://thehill.com/policy/healthcare/5579055-window-shopping-2026-affordable-care-act-plans/ and https://thehill.com/policy/healthcare/5581544-obamacare-premiums-increase-2026/ and https://www.fiercehealthcare.com/payers/tax-credit-turmoil-cost-pressures-set-stage-tumultuous-aca-open-enrollment and https://www.kff.org/quick-take/aca-insurers-are-raising-premiums-by-an-estimated-26-but-most-enrollees-could-see-sharper-increases-in-what-they-pay/
#government shutdown #trump #congress #healthcare #coverage #exchanges
https://thehill.com/policy/healthcare/5575389-open-enrollment-aca-premiums-rise
— Marc S. Ryan
