Cigna Agrees to $3.3 Billion Sale of Medicare Business to Health Care Service Corp.

Cigna is selling its Medicare insurance plans, including Medicare Advantage, to Health Care Service Corp. for $3.3 billion, marking its exit from the Medicare business. The sale comes after a troubled history, including compliance issues and a settlement for alleged falsification of member diagnoses. The deal will expand Health Care Service Corp.'s government footprint and includes the use of Cigna's pharmacy benefit manager. Cigna will incur a $1.5 billion loss but plans to use most of the proceeds to buy back its stock.