{"id":13013,"date":"2024-09-16T14:43:10","date_gmt":"2024-09-16T14:43:10","guid":{"rendered":"https:\/\/distilinfo.com\/healthplan\/?p=13013"},"modified":"2024-09-16T14:43:10","modified_gmt":"2024-09-16T14:43:10","slug":"hcsc-achieves-major-milestone","status":"publish","type":"post","link":"https:\/\/distilinfo.com\/healthplan\/hcsc-achieves-major-milestone\/","title":{"rendered":"HCSC Achieves Major Milestone in Medicare Expansion Strategy"},"content":{"rendered":"\r\n<div id=\"rank-math-toc\" class=\"wp-block-rank-math-toc-block has-pale-ocean-gradient-background has-background\"><nav>\r\n<ul>\r\n<li><a href=\"#introduction\">Introduction<\/a><\/li>\r\n<li><a href=\"#overview-of-the-hcsc-cigna-deal\">Overview of the HCSC-Cigna Deal<\/a>\r\n<ul>\r\n<li><a href=\"#key-players-hcsc-and-cigna\">Key Players: HCSC and Cigna<\/a><\/li>\r\n<li><a href=\"#details-of-the-purchase\">Details of the Purchase<\/a><\/li>\r\n<\/ul>\r\n<\/li>\r\n<li><a href=\"#impact-on-floridas-medicare-market\">Impact on Florida\u2019s Medicare Market<\/a>\r\n<ul>\r\n<li><a href=\"#expanding-hcs-cs-medicare-advantage-membership\">Expanding HCSC\u2019s Medicare Advantage Membership<\/a><\/li>\r\n<li><a href=\"#effects-on-cignas-presence-in-the-state\">Effects on Cigna\u2019s Presence in the State<\/a><\/li>\r\n<\/ul>\r\n<\/li>\r\n<li><a href=\"#strategic-importance-of-the-acquisition\">Strategic Importance of the Acquisition<\/a>\r\n<ul>\r\n<li><a href=\"#growth-in-medicare-business-for-hcsc\">Growth in Medicare Business for HCSC<\/a><\/li>\r\n<li><a href=\"#value-based-care-management-via-care-allies\">Value-Based Care Management via CareAllies<\/a><\/li>\r\n<\/ul>\r\n<\/li>\r\n<li><a href=\"#future-implications-for-medicare-members\">Future Implications for Medicare Members<\/a><\/li>\r\n<li><a href=\"#conclusion\">Conclusion<\/a><\/li>\r\n<li><a href=\"#frequently-asked-questions-fa-qs\">Frequently Asked Questions (FAQs)<\/a>\r\n<ul>\r\n<li><a href=\"#1-what-does-the-hcsc-acquisition-of-cignas-medicare-business-include\">1. What does the HCSC acquisition of Cigna&#8217;s Medicare business include?<\/a><\/li>\r\n<li><a href=\"#2-how-will-this-deal-impact-hcs-cs-medicare-membership\">2. How will this deal impact HCSC&#8217;s Medicare membership?<\/a><\/li>\r\n<li><a href=\"#3-will-current-cigna-medicare-members-see-changes\">3. Will current Cigna Medicare members see changes?<\/a><\/li>\r\n<li><a href=\"#4-what-is-the-value-of-the-deal\">4. What is the value of the deal?<\/a><\/li>\r\n<li><a href=\"#5-what-is-care-allies\">5. What is CareAllies?<\/a><\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n<\/nav><\/div>\r\n\r\n\r\n\r\n<h2 id=\"introduction\" class=\"wp-block-heading\">Introduction<\/h2>\r\n\r\n\r\n\r\n<p>The healthcare insurance landscape in Florida is poised for a significant change as Health Care Service Corporation (HCSC), the parent company of five Blue Cross Blue Shield plans, is set to acquire Cigna&#8217;s Medicare business in the state. On September 11, 2024, Florida&#8217;s insurance commissioner, <a href=\"https:\/\/floridapolitics.com\/archives\/695476-citizens-to-shift-up-to-648000-policies-to-private-insurers-starting-next-month\/\" target=\"_blank\" rel=\"noopener\">Michael Yaworsky<\/a>, approved the acquisition, which will bring substantial shifts in the Medicare market.<\/p>\r\n\r\n\r\n\r\n<p>In this blog, we\u2019ll explore the key details of the acquisition, its impact on Florida\u2019s Medicare market, and what the future holds for both companies and their members. With this transaction, HCSC is expected to make a huge leap in the Medicare Advantage space, nearly quadrupling its membership in the state.<\/p>\r\n\r\n\r\n\r\n<h2 id=\"overview-of-the-hcsc-cigna-deal\" class=\"wp-block-heading\">Overview of the HCSC-Cigna Deal<\/h2>\r\n\r\n\r\n\r\n<h3 id=\"key-players-hcsc-and-cigna\" class=\"wp-block-heading\">Key Players: HCSC and Cigna<\/h3>\r\n\r\n\r\n\r\n<p>Health Care Service Corporation (HCSC) is one of the largest health insurance companies in the U.S. It operates five Blue Cross Blue Shield plans, including those in Illinois, Montana, New Mexico, Oklahoma, and Texas. Its expansion into Medicare Advantage has been a strategic goal, making the acquisition of Cigna&#8217;s Medicare business an essential part of that growth.<\/p>\r\n\r\n\r\n\r\n<p>Cigna, a global health services company, operates in 30 countries and offers a broad range of health, pharmacy, and Medicare plans. The sale of its Medicare business in Florida, which includes Medicare Advantage, Medicare Part D, and supplemental plans, is part of a larger strategy to streamline its focus.<\/p>\r\n\r\n\r\n\r\n<h3 id=\"details-of-the-purchase\" class=\"wp-block-heading\">Details of the Purchase<\/h3>\r\n\r\n\r\n\r\n<p>In January 2024, <a href=\"https:\/\/www.hcsc.com\/newsroom\/news-releases\/2024\/agreement-acquire-cigna-medicare-careallies-businesses\" target=\"_blank\" rel=\"noopener\">Cigna and HCSC<\/a> reached an agreement for the sale of Cigna&#8217;s Medicare business in Florida for $3.3 billion. This deal encompasses:<\/p>\r\n\r\n\r\n\r\n<p>&#8211; Medicare Advantage plans<br \/>&#8211; Supplemental benefits<br \/>&#8211; Medicare Part D offerings<br \/>&#8211; CareAllies, Cigna\u2019s value-based care management subsidiary<\/p>\r\n\r\n\r\n\r\n<p>The consent order, signed by Florida Insurance Commissioner Michael Yaworsky on September 11, 2024, formally approves this transaction.<\/p>\r\n\r\n\r\n\r\n<h2 id=\"impact-on-floridas-medicare-market\" class=\"wp-block-heading\">Impact on Florida\u2019s Medicare Market<\/h2>\r\n\r\n\r\n\r\n<h3 id=\"expanding-hcs-cs-medicare-advantage-membership\" class=\"wp-block-heading\">Expanding Health Care Service Corporation\u2019s Medicare Advantage Membership<\/h3>\r\n\r\n\r\n\r\n<p>Before the acquisition, HCSC had around 217,623 Medicare Advantage members. This deal will nearly quadruple that number, as Cigna brings 596,977 Medicare Advantage members into the fold. With such a substantial increase in membership, HCSC will have a stronger foothold in Florida&#8217;s growing Medicare market, allowing it to compete more effectively with other national insurers.<\/p>\r\n\r\n\r\n\r\n<p>Beyond Medicare Advantage, Cigna\u2019s Part D and supplemental Medicare plans also add significant value to HCSC\u2019s portfolio. Cigna currently serves 450,000 Medicare supplement members and 2.5 million people with Medicare Part D plans, making this acquisition highly impactful for the insurer&#8217;s future growth.<\/p>\r\n\r\n\r\n\r\n<h3 id=\"effects-on-cignas-presence-in-the-state\" class=\"wp-block-heading\">Effects on Cigna\u2019s Presence in the State<\/h3>\r\n\r\n\r\n\r\n<p>For Cigna, this deal represents a strategic shift away from Medicare in Florida, allowing it to focus on other core areas of business. While it will no longer have a presence in Florida\u2019s Medicare Advantage market, the company remains a dominant player in other health services, especially in employer-sponsored plans and value-based care.<\/p>\r\n\r\n\r\n\r\n<h2 id=\"strategic-importance-of-the-acquisition\" class=\"wp-block-heading\">Strategic Importance of the Acquisition<\/h2>\r\n\r\n\r\n\r\n<h3 id=\"growth-in-medicare-business-for-hcsc\" class=\"wp-block-heading\">Growth in Medicare Business for Health Care Service Corporation<\/h3>\r\n\r\n\r\n\r\n<p>The acquisition marks a major milestone for Health Care Service Corporation\u2019s expansion in the Medicare space. Florida is one of the largest markets for Medicare Advantage, and this deal boosts Health Care Service Corporation\u2019s position, enabling it to serve more seniors with a broad array of services and plans.<\/p>\r\n\r\n\r\n\r\n<p>The combined membership will give HCSC greater negotiating power with healthcare providers and enable it to offer more competitive premiums and comprehensive coverage options for Florida&#8217;s Medicare beneficiaries. With a growing aging population, expanding in this segment is essential for the insurer\u2019s long-term growth.<\/p>\r\n\r\n\r\n\r\n<h3 id=\"value-based-care-management-via-care-allies\" class=\"wp-block-heading\">Value-Based Care Management via CareAllies<\/h3>\r\n\r\n\r\n\r\n<p>One of the most strategic components of this acquisition is HCSC\u2019s ability to leverage **CareAllies**, Cigna&#8217;s value-based care management subsidiary. CareAllies focuses on improving care coordination, managing chronic diseases, and enhancing patient outcomes through innovative healthcare delivery models.<\/p>\r\n\r\n\r\n\r\n<p>By incorporating CareAllies into its portfolio, Health Care Service Corporation can strengthen its efforts to shift from traditional fee-for-service models to value-based care, where insurers and providers collaborate to improve quality of care while controlling costs.<\/p>\r\n\r\n\r\n\r\n<h2 id=\"future-implications-for-medicare-members\" class=\"wp-block-heading\">Future Implications for Medicare Members<\/h2>\r\n\r\n\r\n\r\n<p>For Medicare beneficiaries in Florida, the acquisition could lead to new opportunities and enhanced services. HCSC\u2019s larger scale may result in more comprehensive plan offerings and lower premiums. Additionally, CareAllies&#8217; value-based care model could improve care management for patients with chronic conditions, leading to better health outcomes and a more personalized approach to healthcare.<\/p>\r\n\r\n\r\n\r\n<p>However, the transition may also bring changes in how members access their benefits, and some may have to switch doctors or providers if their current ones are not part of Health Care Service Corporation\u2019s network. It&#8217;s crucial for current Cigna Medicare members to review their new plan options and understand how the changes might impact their care.<\/p>\r\n\r\n\r\n\r\n<h2 id=\"conclusion\" class=\"wp-block-heading\">Conclusion<\/h2>\r\n\r\n\r\n\r\n<p>The acquisition of Cigna&#8217;s Medicare business in Florida by Health Care Service Corporation is a transformative move that will shape the future of Medicare Advantage in the state. With Florida&#8217;s Medicare population on the rise, HCSC is well-positioned to expand its footprint and serve more members through enhanced plan offerings and a focus on value-based care.<\/p>\r\n\r\n\r\n\r\n<p>As HCSC takes over Cigna\u2019s substantial membership base, the insurer is set to become a major player in Florida\u2019s Medicare landscape. For Cigna, the deal allows the company to streamline its business and focus on other core areas.<\/p>\r\n\r\n\r\n\r\n<p>Whether you&#8217;re a Medicare Advantage member, a healthcare provider, or an industry observer, this acquisition will have lasting effects on the healthcare ecosystem in Florida.<\/p>\r\n\r\n\r\n\r\n<p><span data-teams=\"true\"><span class=\"ui-provider a b c d e f g h i j k l m n o p q r s t u v w x y z ab ac ae af ag ah ai aj ak\" dir=\"ltr\">Discover the latest <a id=\"menur1jo\" class=\"fui-Link ___1rxvrpe f2hkw1w f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh fhgqx19 f1olyrje f1p93eir f1nev41a f1h8hb77 f1lqvz6u f10aw75t fsle3fq f17ae5zn\" title=\"https:\/\/distilinfo.com\/healthplan\/\" href=\"https:\/\/distilinfo.com\/healthplan\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Link payers&#039; news updates\"><strong>payers&#8217; news updates<\/strong><\/a> with a single click. Follow <a id=\"menur1jq\" class=\"fui-Link ___1rxvrpe f2hkw1w f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh fhgqx19 f1olyrje f1p93eir f1nev41a f1h8hb77 f1lqvz6u f10aw75t fsle3fq f17ae5zn\" title=\"https:\/\/distilinfo.com\/healthplan\/\" href=\"https:\/\/distilinfo.com\/healthplan\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Link DistilINFO HealthPlan\">DistilINFO HealthPlan<\/a> and stay ahead with updates. Join our community today!<\/span><\/span><\/p>\r\n\r\n\r\n\r\n<h2 id=\"frequently-asked-questions-fa-qs\" class=\"wp-block-heading\">Frequently Asked Questions (FAQs)<\/h2>\r\n\r\n\r\n\r\n<h3 id=\"1-what-does-the-hcsc-acquisition-of-cignas-medicare-business-include\" class=\"wp-block-heading\">1. What does the HCSC acquisition of Cigna&#8217;s Medicare business include?<\/h3>\r\n\r\n\r\n\r\n<p>A. The acquisition includes Cigna&#8217;s Medicare Advantage plans, Medicare Part D offerings, supplemental benefits, and the value-based care management subsidiary CareAllies.<\/p>\r\n\r\n\r\n\r\n<h3 id=\"2-how-will-this-deal-impact-hcs-cs-medicare-membership\" class=\"wp-block-heading\">2. How will this deal impact HCSC&#8217;s Medicare membership?<\/h3>\r\n\r\n\r\n\r\n<p>A. The deal will nearly quadruple HCSC\u2019s Medicare Advantage membership, adding over 596,000 new members from Cigna\u2019s portfolio.<\/p>\r\n\r\n\r\n\r\n<h3 id=\"3-will-current-cigna-medicare-members-see-changes\" class=\"wp-block-heading\">3. Will current Cigna Medicare members see changes?<\/h3>\r\n\r\n\r\n\r\n<p>A. Yes, current Cigna members in Florida may experience changes in their plans, benefits, or network of providers. They should review their options carefully once the transition occurs.<\/p>\r\n\r\n\r\n\r\n<h3 id=\"4-what-is-the-value-of-the-deal\" class=\"wp-block-heading\">4. What is the value of the deal?<\/h3>\r\n\r\n\r\n\r\n<p>A. HCSC is purchasing Cigna&#8217;s Medicare business in Florida for $3.3 billion.<\/p>\r\n\r\n\r\n\r\n<h3 id=\"5-what-is-care-allies\" class=\"wp-block-heading\">5. What is CareAllies?<\/h3>\r\n\r\n\r\n\r\n<p>A. CareAllies is Cigna\u2019s value-based care management subsidiary, which focuses on improving care coordination and patient outcomes.<\/p>\r\n","protected":false},"excerpt":{"rendered":"<p>Introduction The healthcare insurance landscape in Florida is poised for a significant change as Health Care Service Corporation (HCSC), the&#8230; <a href=\"https:\/\/distilinfo.com\/healthplan\/hcsc-achieves-major-milestone\/\" style=\"white-space: nowrap;\">Continue Reading <i class=\"fas fa-long-arrow-alt-right\" style=\"vertical-align: middle;\"><\/i><\/a><\/p>\n","protected":false},"author":1,"featured_media":13014,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[1],"tags":[84],"class_list":{"0":"post-13013","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-distilinfo-originals","8":"tag-hcsc","9":"entry"},"_links":{"self":[{"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/posts\/13013"}],"collection":[{"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/comments?post=13013"}],"version-history":[{"count":3,"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/posts\/13013\/revisions"}],"predecessor-version":[{"id":13017,"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/posts\/13013\/revisions\/13017"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/media\/13014"}],"wp:attachment":[{"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/media?parent=13013"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/categories?post=13013"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/distilinfo.com\/healthplan\/wp-json\/wp\/v2\/tags?post=13013"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}