Big Law

Cigna Sells Its Medicare Business to Health Care Service in $3.3 Billion Deal

Insurer Health Care Service Corp said on Wednesday it would buy Cigna’s Medicare business that manages government-backed health insurance for people aged 65 and older for $3.3 billion in cash.

The sale consists of Cigna’s Medicare lines, including Medicare Advantage, Medicare supplement and Medicare drug plans, as well as a unit called CareAllies that works with physician groups and other healthcare providers.

The divestiture marks a change in Cigna’s strategy for the sector it had entered with its $3.8-billion acquisition of HealthSpring in 2011.

Read the source article at Yahoo Finance

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