Cigna Reports Strong Q3 2018 Results Following Express Scripts Acquisition

Recently, VCBeat (WeChat Official Account: vcbeat) learned from foreign media reports that Cigna, one of the largest insurance companies in the United States, recently announced its financial results for the third quarter of 2018. Cigna’s insurance business profit for the previous quarter reached $772 million, higher than the $560 million reported in the same period last year. The company’s total revenue for the third quarter was $11.5 billion, representing a 9% increase compared to the third quarter of 2017. According to the financial report, its operating income is expected to grow by more than 30%, approaching $3.5 billion by the end of the year.

Cigna CEO David Cordani stated during a conference call on November 1 (local time) that this success stems from Cigna’s dedication to its customers, clients, and communities, as well as recent growth achieved through strategic investments. In Black Book’s survey of networks and providers, Cigna ranked first in customer satisfaction. Among the top 10 in the latest J.D. Power Customer Satisfaction Rankings, Cigna secured three positions.

Image from the official Cigna website

Cigna’s HEDIS clinical quality and CAHPS customer satisfaction scores have also improved. Its overall corporate Star Rating is projected to reach 4.5 in 2020, with 76% of Cigna Medicare Advantage plan members expected to receive a Star Rating of four stars or higher in 2020.

Notably, this marks the first earnings release since its recent acquisition of PBM provider Express Scripts. Cigna’s acquisition plan for Express Scripts was approved by the U.S. Department of Justice (DOJ) in September. The DOJ stated that the transaction was “unlikely to harm market competition or consumers.”

NBGH President and CEO Brian Marcotte stated that the merger “should deliver better care for patients and lower costs for employer-sponsored plans,” although its impact on healthcare and pharmacy integration will depend on “Cigna’s ability to execute.”

Cordani stated that the acquisition of a pharmacy benefit manager would enable Cigna to enhance affordability, choice, and predictability for its members. The transaction is expected to close by the end of this year, with Cigna currently working to secure regulatory approvals at the state level.

Cordani said, “Once the deal is completed, Cigna’s strength will be significantly enhanced.” He further stated that Cigna is “very confident in achieving a breakthrough in 2019.”

Cigna is a health services company with more than 40,000 employees. The company’s mission is to improve customers’ health and well-being through the power of healthcare, enhancing their sense of security in matters of health. All of Cigna’s products and services are provided exclusively by the company or through its operating subsidiaries, including Connecticut General Life Insurance Company, Cigna Health and Life Insurance Company, Life Insurance Company of North America, and Cigna Life Insurance Company of New York. The company has expanded its operations to 30 countries and regions, serving more than 95 million customers worldwide.

Express Scripts, founded in 1986, is a pharmacy benefit management company and one of the largest pharmacies in the United States, serving over 85 million people. Express Scripts provides network pharmacy claims processing and home delivery services. In addition, the company distributes a full range of biopharmaceutical products and offers extensive cost management and patient care services.