CMS has lifted Medicare Advantage (MA) sanctions on Cigna, allowing the insurer to market both MA and Medicare Part D prescription drug plans with effective dates beginning July 1.
Cigna had to suspend its MA enrollment and marketing in January 2016, with CMS citing “widespread and systemic” failures that barred patients from accessing medical services. The lifting of sanctions could also be a precursor to another acquisition or merger, including buying up Humana, another insurer which has just gone through a deal which failed on antitrust grounds.
"Not only does the announcement bode well organically for Cigna and its re-entry into the 2018 Medicare Advantage selling season, it paves the way for a potential divestiture of the legacy HealthSpring Medicare Advantage book and a bid for Humana," Leerink Partners analyst Ana Gupte said to Reuters.
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John joined TriMed in 2016, focusing on healthcare policy and regulation. After graduating from Columbia College Chicago, he worked at FM News Chicago and Rivet News Radio, and worked on the state government and politics beat for the Illinois Radio Network. Outside of work, you may find him adding to his never-ending graphic novel collection.