$1.4 billion in profit propels Cigna in Q3

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The Cigna Group has collected $1.4 billion in profit and $49 billion in revenue during the third quarter of this year, and while the total profit is only half of what Cigna reported during Q3 2022, revenue increased by about $4 billion year-over-year.

That brings total revenue for the year up to $144.2 billion, and total profit up to $4.1 billion.

Chairman and CEO David Cordani attributed this performance to clinical expertise and service capabilities across the company, boosted by "disciplined execution."

"We're meeting the evolving needs of those we serve," he said.

Cigna's adjusted income from operations for the third quarter was $2 billion, or $6.77 per share, compared with $1.9 billion, or $6.05 per share, for Q3 2022, which the company attributed to strong contributions from both Evernorth Health Services and Cigna Healthcare.

WHAT'S THE IMPACT?

Cigna increased the number of its pharmacy customers by 5% over the end of last year, growing to 98.3 million, and medical customers grew 9% over that same timeframe, hitting 19.6 million customers. This was driven by growth in U.S. Commercial fee-based customers as well as in Individual and Medicare Advantage customers.

Subsidiary Evernorth drew strong numbers during the quarter. Adjusted revenues increased 8% relative to Q3 2022, due to organic growth in specialty and care delivery and management solutions. Adjusted income from operations, pre-tax, increased 6% over that time, while the adjusted margin, pretax, was 4.4%, compared to 4.6% in Q3 2022, which Cigna attributed to strategic technology investments.

Cigna Healthcare, which includes the U.S. Commercial, U.S. Government and International Health businesses, also saw revenues grow in the quarter – to the tune of 14% over the prior-year quarter. Customer growth and premium rate increases to cover underlying medical cost trends were the main drivers.

Adjusted income from operations, pretax, increased 16% relative last year's Q3, primarily driven by a lower U.S. Commercial medical cost ratio (MCR) and higher net investment income. The Cigna Healthcare MCR was 80.5% for the quarter compared to 80.8% for Q3 2022.

The broader company's outlook for 2023 adjusted revenues increased to at least $192 billion, and the outlook for full-year consolidated adjusted income from operations is at least $7.36 billion.

THE LARGER TREND

Cigna Group, Cigna Healthcare and Evernorth Health Services are now three distinct brands within the company, part of a rebranding initiative announced in February.

The new holding company name is the Cigna Group, the company announced. It employs more than 70,000 people and maintains sales capabilities in more than 30 countries and jurisdictions, the organization said.

In August Cigna Healthcare said it would be removing close to 25% of medical services from prior authorization requirements. With the removal of these 600-plus additional codes, the company has now removed prior authorization on more than 1,100 medical services since 2020. Cigna said the goal is to simplify the healthcare experience both for consumers and for clinicians.

Last month, Cigna agreed to pay $172 million to resolve allegations that it padded its reimbursement by submitting false Medicare Advantage diagnostic codes. The agreements resolve a False Claims Act lawsuit brought by a whistleblower and the federal government linked to past risk adjustment submissions from certain types of patient records, some dating back more than a decade.

Twitter: @JELagasse
Email the writer: Jeff.Lagasse@himssmedia.com