A recent report by health insurance giant Cigna reveals a concerning trend in the American workforce. The company’s fourth-quarter profits fell short of Wall Street expectations due to skyrocketing healthcare expenses. Executives attribute this surge to catastrophic medical claims, which their business is increasingly covering. To recoup lost profits, Cigna is raising prices for employer plans, causing its stock to plummet over 8%.
Industry-wide, insurance companies are witnessing a growing need for high-ticket health procedures as workers resume pre-pandemic care habits. This trend suggests that the US workforce is experiencing a surge in serious medical conditions, such as cancer and heart problems. As a result, employers and employees can expect increased healthcare costs and premium hikes in the coming years.
Source: https://www.statnews.com/2025/01/30/cigna-lower-fourth-quarter-earnings-stop-loss-business-higher-medical-loss-ratios