Cigna trims Medicare Advantage plans in eight states

Cigna is reshaping its Medicare Advantage (MA) plan lineup across eight states, affecting members in 36 health plans.

The announcement was posted on the website of insurance brokerage Pinnacle Financial Services.

“While there are 36 plans impacted, the majority of them have low membership, and with the exception of four full county [exits], we have alternate MA plans available,” Cigna said in the announcement.

The eight states impacted are Colorado, Florida, Illinois, Missouri, North Carolina, Tennessee, Texas and Utah. Up to 5,395 beneficiaries will have to find new plans, 4,000 of which reside in Florida.

Cigna will no longer offer PPO plans in Florida and in counties in two other states. Many states see plan reductions in certain counties but alternatives will be offered by Cigna. However, Cigna is fully exiting select counties in Missouri and North Carolina.

“Every year, Cigna Healthcare Medicare evaluates services areas for viability, network adequacy and provider engagement,” the notice said. “If any gaps are identified in these areas that cannot be resolved, it can result in Cigna Healthcare reducing these service areas and/or not renewing plans."

In January, Cigna agreed to sell its Medicare business to Health Care Service Corp (HCSC) for $3.7 billion. The deal included Medicare Advantage, Part D, supplemental benefits and its CareAllies business. HCSC also began an arrangement with Evernorth, a Cigna subsidiary, to provide pharmacy services.

Other major insurers are also feeling the pressure from MA regulatory changes. Humana is exiting 13 markets next year, impacting 10% of its MA membership base, and health plans have reported high utilization in the first half of the year.