Does HCSC overpay for Cigna Medicare for a mere 600k Medicare advantage members not sure how many of them stay after the deal ? The total Cigna Medicare revenue also less than 8b with more then 5000 employees coming to Hcsc
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One Star plans???
They would have already been sanctioned and enrollment halted in these plans if that were the case.
Obviously this person has no clue what they are talking about.
I think the value for HCSC was multi-fold here. One, it instantly gives them a ton of new markets with already established membership and provider networks - this saves HCSC years and tens of millions in pursuing it themselves. Two, and possibly larger is that HCSC is doing very poorly with their MA product from a Stars perspective with most of their plans being one star plans. This effectively means that they are losing potentially hundreds of millions in reduced CMS payouts and also risking sanctions. Cigna's MA plans are 80%+ 4 star now which means they are being paid at a much higher rate. My guess is they want Cigna folks to clean up the Stars mess and make HCSC's product viable.
Ok. I'll bite. Why do you think it's going to get interesting?
The deal still is yet to be finalized. Get your popcorn ready. It is going to get interesting. Enjoy the show.
Well I see you used Google to find this “Cigna's Medicare plans currently serve 3.6 million Medicare members, with nearly 600,000 in Medicare Advantage plans, more than 450,000 on Medicare Supplement plans and 2.5 million with Medicare Part D.”
I specified 700k MEDICARE ADVANTAGE members. That is true. 600k last year (which is what Google knows) increased to 700k this year. The rest of the membership moving to HCSC is made up of members not in a Medicare-Advantage plan.
So you’re not wrong, you stated Medicare in general. But I’m not wrong either bc I specified Medicare Advantage. The clarity is good.
More like 3.6M members coming across. Where did you get 700K? Regardless, time will tell if this was a good acquisition. Seems risky, based on market dynamics the past couple of years
Cigna is bringing over 700k Medicare Adv members as well as the staff to support that membership.
that increases our medicare membership by almost 50% right? plus our footprint expands to over a dozen other states which we could then compete in in other lines of business as well.