Health insurer Cigna reported a net income of over $3.4 billion for 2024, including $1.4 billion in the fourth quarter, as it works to control rising medical expenses. The company is struggling like other health insurers to manage costs amid an influx of patients seeking medical treatment.
The surge in claims is driven by pent-up demand for medical care put off during the Covid-19 pandemic. Cigna’s medical cost ratio rose dramatically in the fourth quarter to 87.9%, compared to 82.2% in the same period last year. For all of 2024, the medical cost ratio was 83.2%, up from 81.3% in 2023.
Cigna is taking corrective actions to address these pressures and advancing its long-term growth strategy. The company plans to focus on building a sustainable model for healthcare by addressing transparency, support, and value for patients and clients.
In addition, Cigna announced the sale of its Medicare health benefits businesses and medical care provider services operation for $3.3 billion to Health Care Service Corp., which will acquire these assets in the first quarter of this year. This deal marks a significant move by Cigna to exit the government-subsidized health insurance business for seniors.
Despite the challenges, Cigna’s total revenues increased 27% to $247.1 billion in 2024, driven primarily by growth in Evernorth Health Services. The company also reported strong growth in its pharmacy benefit management services, with 20% more customers and a significant increase in revenue from Express Scripts.
Source: https://www.forbes.com/sites/brucejapsen/2025/01/30/cigna-2024-profits-eclipse-34-billion-despite-rising-costs