The Cigna Group reported nearly $1.5 billion in second quarter profits as its total health plan … [+]
The Cigna Group reported nearly $1.5 billion in second quarter profits as its total health plan enrollment approaches 20 million thanks to solid growth of government and commercial health coverage.
Cigna Thursday reported second quarter net income of $1.46 billion, or $4.92 per share, compared to $1.56 billion, or $4.89 per share in the second quarter of 2022. Revenues, meanwhile, rose by 7% to $48.6 billion in the quarter compared to $45.4 billion in the year-ago period on strong performance of Cigna’s health plans and Evernorth Health Services, which includes the company’s Express Scripts pharmacy benefit management company.
“Total medical customers at second quarter 2023 grew 8% from December 31, 2022 to 19.5 million, an increase of 1.5 million customers, primarily driven by growth in U.S. Commercial fee-based customers as well as in individual and Medicare Advantage customers,” the company announced in its second quarter earnings report. Health plan enrollment was up nearly 10% from 17.8 million in the second quarter of 2022.
In particular, Cigna more than doubled the number of customers buying individual coverage under the Affordable Care Act, also known as Obamacare, to 820,000 compared to 337,000 at the end of 2022. Cigna also reported 12% growth in the number of seniors buying its Medicare Advantage plans to 592,000 compared to 529,000 at the end of 2022.
Meanwhile, Cigna, which owns the pharmacy benefit manager Express Scripts, grew its total pharmacy customer base by 5% from December 31, 2022 to 98.6 million as of the end of the second quarter “due to new sales and the continued expansion of relationships,” the company said. This helped Evernorth revenue rise 10% to $38.2 billion in the quarter.
“We’re pleased with our performance and growth across the breadth of our business in the second quarter as our co-workers continued to drive innovation and deliver effective and affordable solutions supporting the health and vitality of our customers, patients and clients,” Cigna chairman and chief executive David Cordani said.