Cigna reports positive results for third quarter
Reprints
Cigna Corp. on Friday reported moderate gains in revenue and profit in the third quarter of 2015, driven mainly by growth in the health insurer's government-sponsored and commercial self-insured accounts.
Total revenue at Bloomfield, Connecticut-based Cigna — which is currently seeking federal regulators' approval of a proposed merger with its larger rival, Anthem Inc. — for the three months ending Sept. 30 grew by 7.2% over same-period results from a year ago to $9.39 billion.
The company's net income for the quarter grew by 2.4% compared with third-quarter results reported in 2014 to $547 million.
Cigna's total medical membership grew by 3.5% over totals reported at the same point in 2014, to 14.8 million members. Most of the company's enrollment gains were attributable to its Medicare and Medicaid segments, which grew membership by 8% and 12%, respectively.
“The effective execution of our focused strategy to provide affordable, personalized solutions is reflected in our increased outlook for 2015 and gives us the momentum to drive continued growth in 2016,” David Cordani, Cigna's president and CEO, said in a statement released on Friday.
Like many of its peers in the health insurance industry, Cigna reported substantial declines in its individual commercial enrollments, which fell by 27% to 215,000 versus totals from the previous year primarily because of lower-than-expected consumer takeup of health plans purchased through the public insurance exchanges established under the federal health care reform law.
Cigna said in its statement that it expects attrition in its individual coverage segment to continue in 2016, but that those losses would likely be offset by membership gains in its other insurance segments, as well as continuing growth in its noninsurance services, including behavioral health and benefits management.
Read Next
-
Cigna cleared of stealing firm's points-based wellness plan
An Illinois appeals court says Cigna Corp. did not steal its concept for a points-based workplace wellness program from a competing health insurer.
