Cigna Sells Its Medicare Unit to HCSC for $3.3 Billion (2)

Health insurer Cigna Group agreed to sell its Medicare business to Health Care Service Corp. for $3.3 billion, the companies announced in a statement Wednesday.

Under the agreement, HCSC would acquire Cigna’s Medicare units, including Medicare Advantage, Medicare supplement and Medicare drug plans. The deal also includes CareAllies, which works with physician groups and other health-care providers. The insurer will keep selling pharmacy benefits services to the divested Medicare plans under a four-year agreement.

Cigna put the total transaction value at $3.7 billion, which includes capital released from reserves. The transaction is expected to close early next year.

Cigna will ...