Significant changes are coming to Medicare this fall, especially for Medicare Advantage and Medicare Part D prescription drug plans. We’ve already heard about insurance carriers Aetna and Humana leaving Medicare Advantage markets or reducing benefits, plus the Inflation Reduction Act’s impact on Medicare Part D costs.
Among these changes, Cigna is selling its entire Medicare business, including all Medicare Advantage plans, Medicare Part D prescription drug plans, and Medicare Supplement plans. By early 2025, Health Care Service Corporation, licensee of Blue Cross Blue Shield, will own all of Cigna’s Medicare business. What does your current enrollment in a Cigna Medicare plan mean for your health and budget?
600,000 Medicare beneficiaries enrolled in a Cigna Medicare Advantage plan may have their plan’s network changed. With the sale, Cigna enrollees may find their providers no longer in-network. This can potentially increase out-of-pocket costs should a Cigna enrollee continue to seek care from suddenly out-of-network providers. It can also disrupt Medicare beneficiary care because of the need to find new providers in-network. Finding, establishing, and building relationships with new doctors or specialists can disrupt the continuity of one’s care.
The 3.1 million Medicare beneficiaries with a Cigna Medicare Part D plan (2.5 million on a stand-alone prescription drug plan) or a Medicare Advantage Prescription Drug plan (564,000) may find their prescription drug coverage unchanged in the short term, but this remains hypothetical until the sale is completed in early 2025.
Notably, the Inflation Reduction Act (IRA) is causing significant disruption this fall and for the foreseeable future. Higher premiums could be on the horizon due to the IRA’s cap on out-of-pocket prescription drug costs starting in 2025, Biden-administration drug price negotiations, and Wegovy’s CMS approval for beneficiaries with Heart Disease and other similar medications. While the IRA’s cap and negotiations seem positive from the outset, unfortunately, the money has to come from somewhere and will likely come from higher prescription drug plan premiums.
Agent tip:
“If you’re enrolled in a Cigna Medicare Advantage, Part D, or Medicare Supplement plan, contact a local licensed agent to have your Medicare plan reviewed this fall.“
The impact of Cigna’s sale is currently unknown for those enrolled in a Medicare Supplement plan (Medigap). Health Care Service Corporation (HCSC) licenses Blue Cross Blue Shield plans in Illinois, Montana, New Mexico, Oklahoma, and Texas. It’s also unclear whether HCSC will expand outside these states, so if you have a plan outside of these areas, your plan could be discontinued in 2025. We’ll have to wait and see.
With this news, what should your next best step be? Connie Health recommends that if you’re enrolled in a Cigna Medicare Advantage, Part D, or Medicare Supplement plan, you contact a local licensed agent to have your Medicare plan reviewed this fall.
On average, Medicare households spend $7,000 on healthcare per year. This accounts for nearly 14% of household income and is twice the amount that a non-Medicare household spends on health care expenses.
This fall’s Medicare shakeup, including Cigna selling its Medicare business, is an opportunity for individuals and caregivers to schedule a plan review to ensure that they and their loved ones have the coverage they need in the coming year. By having a Medicare plan review, you can ensure that you’re not left in the wake of benefit cuts and rising prescription drug costs, and that your doctors and specialists remain in your network – so you can get the care you need.
Everyone on Medicare can schedule a plan review during the Medicare Annual Enrollment Period between October 15th – December 7th. You can schedule your annual review appointment starting October 1st. Call to speak with a local licensed Connie Health agent in your area.
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Yes, Cigna has Medicare Advantage plans, and more than 600,000 Medicare beneficiaries are enrolled in one. The majority of those enrollees have a Medicare Advantage Prescription Drug plan.
As of fall 2024, Cigna is selling its Medicare business to Health Care Service Corporation (HCSC), which licenses Blue Cross Blue Shield plans in Illinois, Montana, New Mexico, Oklahoma, and Texas. The sale is expected to be completed in early 2025, with changes to Cigna Healthcare Medicare Advantage plans, Part D prescription drug plans, and Medicare Supplement plans on the horizon.
Read more by Renee van Staveren
Since 2009, I've been writing about complicated, technical issues, with the goal of making topics like Medicare and healthcare easier to understand. I've been writing about Medicare since 2021 and healthcare since 2019. I am an AmeriCorps alumni. I enjoy gardening, reading, and DIYing.
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