The Cigna Group reported a $1 billion profit in the fourth quarter on solid growth of its health insurance plans and Evernorth health services.
The company’s fourth quarter and full year 2023 earnings report, which showed total medical customers grew 10% to 19.8 million, comes following news this week that Cigna was selling its Medicare businesses and a provider services operation to Health Care Service Corp. for more than $3 billion.
Though Cigna has decided to sell its Medicare Advantage business to Health Care Service, the parent of Blue Cross and Blue Shield plans in five states, the insurer said that business did contribute to growth in the fourth quarter.
“Total medical customers at December 31, 2023 grew 10% from December 31, 2022 to 19.8 million, an increase of 1.8 million customers, primarily driven by growth in U.S. Healthcare, including fee-based customers as well as individual and family plans and Medicare Advantage customers,” Cigna said in its report released Friday. Meanwhile, Cigna said its total pharmacy customers also increased by 5% to 98.6 million compared to the year-ago period “due to new sales and the continued expansion of relationships.” Cigna owns Express Scripts, one of the nation’s largest pharmacy benefit management companies.
Cigna’s total revenues for the quarter were up 12% to $51.1 billion from $45.7 billion in the fourth quarter of 2022. The biggest chunk of the company’s revenue comes from Evernorth Health Services, which grew by 12% in the fourth quarter to $40.5 billion compared to $36.2 billion in the year-ago period, “reflecting strong organic growth in specialty pharmacy and care solutions,” Cigna said in its earnings report.
For the year, Cigna reported net income of $5.2 billion on total revenues of $195.3 billion.
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