The Cigna Group reported $1.3 billion in first quarter profits thanks in part to the addition of 1.5 … [+]
The Cigna Group reported more than $1.2 billion in first quarter profits thanks in part to the addition of 1.5 million new enrollees in its health plans.
Cigna Friday said net income increased more than 6% to $1.267 billion, or $4.24 per share, compared to $1.197 billion, or $3.73 per share, in the first quarter of 2022. Revenues, meanwhile, also rose by 6% to $46.5 billion compared to $44 billion a yaer ago as the company added new business across its portfolio of medical and pharmacy benefits and Evernorth Health Services.
“(Cigna’s) total medical customer base at first quarter 2023 grew 8% to 19.5 million, an increase of 1.5 million customers from December 31, 2022, primarily driven by growth in fee-based customers as well as growth in Individual and Medicare Advantage customers,” the company announced in its first quarter earnings report.
In particular, Cigna doubled the number of customers buying individual coverage under the Affordable Care Act, also known as Obamacare, to 786,000 compared to 337,000 at the end of 2022. Cigna also reported 10% growth in the number of seniors buying its Medicare Advantage plans to 584,000 compared to 529,000 at the end of 2022.
Cigna had nearly 19.5. million medical customers in its health plans as of March 31 of this year compared to 18 million at the end of 2022. Cigna, which owns the pharmacy benefit manager Express Scripts, grew its total pharmacy customer base by 5% in the first quarter from December 31, 2022 to 98.7 million “due to new sales and the continued expansion of relationships,” the company said.
“Our strong results in the first quarter demonstrate how our company continues to execute well, while also introducing innovative, market-leading solutions that improve clinical outcomes, affordability and transparency for the benefit of those we serve,” said David Cordani, chairman and chief executive officer.
The solid start to the year convinced Cigna’s management to raise its 2023 financial forecast for adjusted income from operations to “at least $24.70 per share” compared to an earlier forecast for adjusted income from operations of “at least $24.60 per share.”