Cigna first-quarter profits drop 80 percent

Uh oh--this can't be good. A multitude of insurers have have posted rather disappointing financial results, including UnitedHealth Group, Humana, Health Net and WellPoint--and now another big insurer joins the party. Cigna has announced that it saw an 80 percent drop in first-quarter profits over the same quarter last year, with earnings of $58 million this time versus $289 million one year ago. Cigna has been hit by a multitude of factors, including a tough flu season, litigation and the cost of integrating newly-acquired Great-West Healthcare. All that being said, Cigna executives did cite some bright spots in their picture, including a predicted rise of 2 to 2.5 percent in enrollment (excluding Great-West enrollees). But this is still shaping up to be a tough year for U.S. health plans generally. Brace yourself for next year: premiums are likely to shoot up, employees to carry more costs, and providers to get hit with more bad debt. It's a pretty ugly picture all around.

To learn more about Cigna's problems:
- read this Modern Healthcare article (reg. req.)

Related Articles:
UnitedHealth suffers financial setback
WellPoint profits fall 25 percent during first quarter

Suggested Articles

The profit margins and management of Community Health Group raise questions about oversight of managed care insurers.

Financial experts are warning practices about the pitfalls of promoting medical credit cards to their patients.

A proposed rule issued by HHS on Tuesday would expand short-term coverage, a move Seema Verma said will have "virtually no impact" on ACA premiums.