Cigna's Humana Medicare Plans

Cigna corporation has entered into a deal with Humana Inc which provides Humana's Medicare Advantage insurance to employers in Cigna's customer base. Humana’s Medicare plans will be sold to its corporate clients by Cigna Corporation, beneath the new agreement.

From July 1, the plan is predictable to be in effect. Many of us do not know what retirement is any more so the plans will offer coverage for retirees or who are ready to retire. The agreement was called unique by Oppenheimer & Co. analyst Carl McDonald and estimated that the retiree-benefit market represents about 10 million people. Cigna does not have a significant presence in that market, Mr. McDonald said, "Today if Cigna goes to a group and says, 'What do you think about Medicare Advantage?' they'd say, 'It's something we're looking at but we'd never do it with you".

According to The Wall Street Journal, Humana has a niche market in Medicare plans designed for seniors while for big employers; Cigna Corp. specializes in health plans. To provide any other financial details, the companies refused. The president of Cigna’s government segment Sam Srivastava, said, “We know there will be reform, we know it will cause disruption, but for us it's an opportunity to be smart. For us not to be in government wouldn't make sense."

Dozens of Medicare Advantage plans nationwide is offered by Humana (based in Louisville, Ky). With an enrollment of 1.5 million people at the end of last year, Humana is the second-largest provider of Medicare Advantage plans. Only UnitedHealth Group Inc. is followed by it.

Cigna is the fourth-largest publicly traded health insurer based on medical enrollment. An included suite of medical, dental, behavioral health, pharmacy and vision care benefits, as well as group life, accident and disability insurance is provided (to approximately 46 million people throughout the United States and around the world) by CIGNA Corporation's operating subsidiaries. The headquarters of Cigna is in Philadelphia which offers coverage to employers in every state.