by Russell Noga | Updated August 22nd, 2024
Exploring changes to your Medicare supplement plan with Cigna for 2025? This article cuts through complexity to deliver clear, actionable information on Cigna Medicare Supplement 2025 plans. Expect to find an impartial breakdown of revised coverages, potential cost implications, and how to assess the value these plans could provide for your healthcare journey.
Key Takeaways
- Cigna’s anticipated changes to their Medicare Supplement plans involve a sale to HCSC, continuing to cover costs like deductibles and coinsurance, and offering enhanced benefits including prescription drug coverage and emergency care during foreign travel.
- HCSC’s acquisition of Cigna’s Medicare businesses for $3.7 billion aims to improve and diversify Medicare plan options, committed to innovation and the growth of HCSC’s footprint in the Medicare market.
- Choosing the right Cigna Medicare Supplement plan requires careful comparison of costs, benefits, and provider networks to ensure the plan fits individual healthcare needs and financial situations.
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Cigna's Medicare Supplement Plans for 2025
Cigna’s Medicare Supplement plans have been a reliable choice for many, offering comprehensive coverage that bridges the gap where traditional Medicare Parts A and B leave off. These plans cover costs like deductibles and coinsurance, easing the financial burden of healthcare expenses for policyholders. However, with Cigna’s planned sale of its Medicare businesses to HCSC, the specifics of these plans for 2025 remain under wraps.
Despite forthcoming alterations, it is reasonable to expect that the superior advantages that have been a hallmark of Cigna’s Medicare plans will persist in benefiting the policyholders. Ranging from crucial prescription drug coverage to emergency benefits for overseas travel, these policies extend beyond mere insurance to ensure the health and well-being of its members. However, selecting the appropriate plan involves more than merely assessing the benefits. It involves identifying a plan that matches your healthcare requirements and financial situation, a process that necessitates comparing the vast array of available Cigna’s Medicare plans.
Plan Offerings
Cigna’s array of Medicare Supplemental Insurance policies, often referred to as Medigap policies, cover costs not reimbursed by traditional Medicare, providing a safety net for healthcare expenses. But the cost of these policies isn’t one-size-fits-all. The price tag varies, influenced by factors such as the chosen policy and geographical location.
Regardless of the cost differences, these plans distinguish themselves with their offerings of robust clinical programs and offerings that meet a broad spectrum of healthcare needs. Some of the key features of these plans include:
- Taking care of deductibles and coinsurance
- Offering extra benefits
- Maximizing beneficiaries’ Medicare benefits
- Reducing out-of-pocket expenses
Enhanced Benefits
One of the distinguishing features of Cigna’s Medicare plans is the wide range of superior benefits they offer. For instance, Cigna’s Medicare Part D plans extend essential prescription drug coverage to beneficiaries, helping them afford the medications they need. In addition, certain plans include a foreign travel emergency benefit, covering 80% of emergency care costs when beneficiaries are abroad.
These plans go beyond insurance, offering additional non-insurance services such as discounts via Healthy Rewards and support from licensed health advocates. Even after the transition to HCSC, Cigna’s Evernorth subsidiary will continue to provide pharmacy benefit services, ensuring that plan members continue to enjoy these benefits. With options to expand access to quality affordable care, these enhanced benefits add significant value to Cigna’s Medicare plans through the existing health benefits platform.
Comparing Plans
Given the wide array of Medicare Supplement plans available, selecting the most suitable one isn’t a simple task. It requires a careful comparison of plans based on individual healthcare needs and financial circumstances.
For instance, Plan N covers 100% of Medicare Part B coinsurance, with the exception of a copayment for certain office visits and emergency room visits that do not result in inpatient admission. On the other hand, the High Deductible Plan G requires beneficiaries to cover all costs up to the deductible for Medicare-approved expenses before the policy kicks in.
The costs associated with Medicare include:
- Medicare Part A and B premiums
- Medicare Advantage Plan premiums
- Deductibles and copayments for services
- Prescription drug costs
Ultimately, the goal is to find a plan that fits your medical needs and financial situation, whether it’s a Cigna Medicare Supplement plan or a Medicare Advantage Plan. The key is to compare, consider, and choose wisely.
The Role of Health Care Service Corporation
The $3.7 billion sale of Cigna’s Medicare businesses, encompassing:
- Medicare Advantage
- Part D
- supplemental benefits
- CareAllies LLC
to HCSC signifies a major transformation in the Medicare arena. With HCSC acquiring these businesses, the Medicare plan options available to consumers are set to expand and diversify, driven by HCSC’s commitment to innovation and improved health outcomes.
Even as HCSC assumes control of Cigna’s Medicare businesses, Cigna’s Evernorth subsidiary will persist in delivering pharmacy services to these Medicare plans. This anticipated expansion, backed by HCSC’s dedication to innovation and quality healthcare, is set to bring a fresh perspective to the Medicare market and offer a wider range of choices to consumers.
Strengthening Medicare Businesses
HCSC’s acquisition of Cigna’s Medicare businesses is expected to notably bolster HCSC’s footprint and capabilities in the Medicare market. This move aligns with HCSC’s intentions to expand access to quality, affordable care and strengthen its strategic growth in this segment.
Offering a more diverse range of Medicare products and robust clinical programs, HCSC is set to provide a broader choice for current and future members and support the company’s growth aspirations within the Medicare space. The integration of Cigna’s Medicare business into HCSC’s operations is designed to bring new members into a proven community-first member and provider engagement model, promising to deliver unique value.
Sustained Investment Focus
HCSC’s strategic emphasis indicates a mutual pledge to invest resources in broadening access and dedicated support in the burgeoning Medicare marketplace, particularly in the overall Medicare space. With a wide range of healthcare products and services, including those for Medicare and Medicaid, HCSC’s current offerings are already robust. However, dedicated resources disproportionate to the market size are necessary to ensure the company’s continued success in this competitive landscape.
The acquisition of Cigna’s Medicare businesses is poised to fortify these offerings, further solidifying HCSC’s presence in the Medicare plan segment. This sustained investment focus is a testament to HCSC’s dedication to bringing meaningful value to all stakeholders and accelerating growth in this attractive segment.
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Cigna's Expansion in the Healthcare Market
Even though the sale of its Medicare businesses represents a substantial shift, Cigna is not retreating. On the contrary, Cigna CEO David Cordani envisions this sale as a stepping stone for accelerated growth and an enhanced service platform for stakeholders. The anticipated transaction is projected to be accretive to Cigna’s adjusted earnings per share by 2025, supporting the company’s long-term growth target.
The proceeds from the sale will be channeled in accordance with Cigna’s deployment priorities, specifically earmarking a substantial portion for share buybacks. With its Medicare Advantage plans expanding to new regions, Cigna is set to mark the fifth consecutive year of service area growth, solidifying its position in the healthcare market.
Forming Independent Physician Associations
Cigna’s Collaborative Care arrangements necessitate primary care physician groups to be accountable for the populations they serve, including substantial primary care components. These medical groups can range from:
- large primary care practices
- multi-specialty groups
- fully integrated delivery systems
- form independent physician associations
In line with its commitment to quality care, Cigna partners with a diverse array of healthcare providers, including the Cigna group, from physician groups of varying sizes to specialist groups and hospitals. These collaborations are a testament to Cigna’s dedication to fostering partnerships that ensure the best care for its plan members.
Acquisition Supplements
Cigna’s sale of its Medicare business to HCSC for $3.7 billion is expected to fuel its growth aspirations in the healthcare market. With HCSC acquiring Cigna’s Medicare Advantage, Part D, supplemental benefits, and CareAllies businesses, Cigna’s focus can shift to exploring new growth opportunities.
Post-acquisition, Cigna’s Evernorth subsidiary will continue to provide pharmacy services to the Medicare plans for a four-year period. The CEO of Cigna stated that the sale will enable the company to concentrate on growth opportunities in its Evernorth Health Services and Cigna Healthcare portfolios.
With the transaction expected to be beneficial to its earnings for 2024, Cigna is poised for an exciting future in the healthcare market.
Navigating Regulatory Approvals
Operating within a complex regulatory landscape, different entities secure Cigna’s Medicare Supplement plans, subject to the state, including the American Retirement Life Insurance Company and Cigna Health and Life Insurance Company. The offering of specific Medicare Supplement plans by Cigna is subject to the regulatory approvals of each state, which includes various state disclosures, exclusions, and limitations.
To maintain compliance with Medicare regulations, Cigna Behavioral Health aligns its Treatment Record Review (TRR) standards with state mandates and requirements set by the Centers for Medicare & Medicaid Services (CMS). Navigating this maze of regulations is a task undertaken by Cigna’s corporate legal counsel and care coordinators.
Corporate Legal Counsel
Cigna’s corporate legal counsel bears the responsibility of ensuring compliance with all regulatory requirements. This legal team is specifically responsible for compliance with state-specific regulations regarding Medicare Supplement disclosures, exclusions, and limitations.
In addition to state regulations, Cigna’s legal team also ensures compliance with federal health program requirements, utilizing the Corporate Integrity Agreement with the Office of Inspector General as a guide. This comprehensive approach to compliance is crucial in maintaining Cigna’s reputation and trust among its plan members.
Provider Compliance
In terms of adherence to Medicare regulations and commitment to high-quality care, Cigna’s care coordinators play a pivotal role. These care coordinators often registered nurses, work collaboratively with participating providers to ensure patients receive necessary health screenings and appropriate follow-up care through the Cigna Collaborative Care program.
They also team up with Cigna’s case managers to facilitate patients’ access to supportive clinical programs, focusing on the management of chronic conditions and lifestyle changes. This dedication to provider compliance ensures that Cigna’s plan members receive the best possible care within the framework of Medicare regulations.
Tips for Choosing the Right Plan
Selecting a Medicare Supplement plan that caters to your healthcare needs and financial situation can appear overwhelming. However, understanding what to look for can simplify the process. Start by identifying the healthcare services you use most frequently and ensure the Medicare supplement plan you choose offers comprehensive coverage for those services, including Medicare supplemental benefits.
Also, analyze the out-of-pocket expenses associated with each Medicare supplement plan. This includes considering:
- premiums
- deductibles
- coinsurance
- copayments
For those who prefer lower monthly premiums and can handle higher out-of-pocket expenses before benefits kick in, a high-deductible Medicare supplement plan may be an appropriate choice.
Assessing Medical Costs
Evaluating past healthcare expenditures and taking into account potential health changes that could affect future medical costs is a vital step in plan selection. Cigna reserves the right to increase premiums on a class basis, highlighting the importance of anticipating potential cost changes over time.
Understanding the distinction between fixed copayments for services and coinsurance percentages of Medicare-approved costs after the deductible is met is essential when calculating medical expenses. Plan members can rely on a degree of stability and predictability with Cigna’s Medicare Supplement plans, which guarantee continued coverage except in cases of non-payment or misrepresentation.
Evaluating Provider Networks
Assessing provider networks for Medicare supplement plans is crucial to ensure that individuals can avail of services from their chosen healthcare providers and facilities. Check if your current healthcare providers, such as doctors and specialists, are included in the provider network of the Medicare supplement plan you are considering.
Also, examine the flexibility of the provider network, especially if you travel often or live in multiple locations throughout the year. Inquire about the plan’s policies regarding referrals to see specialists and whether any additional costs or restrictions apply when seeking care from out-of-network providers.
Lastly, look for plans that include a good selection of hospitals and clinics, especially those known for treating specific conditions if relevant to your healthcare needs.
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Summary
Navigating the world of Medicare Supplement plans can be complex, but with the right guidance, it’s manageable. Cigna’s Medicare Supplement plans stand out for their comprehensive coverage and enhanced benefits, providing a safety net for healthcare expenses. The sale of its Medicare businesses to HCSC marks a pivotal shift, bringing new opportunities for both companies and consumers. Understanding regulatory requirements and the importance of provider compliance is key, as is assessing medical costs and evaluating provider networks when choosing a plan. By taking these factors into account, individuals can make informed decisions and select a plan that aligns with their healthcare needs and financial circumstances.
Frequently Asked Questions
Is Cigna selling its Medicare business?
Yes, Cigna is selling its Medicare business to Health Care Service Corp for about $3.7 billion. This includes its Medicare Advantage insurance, supplemental benefits business, and Medicare prescription drug coverage.
What company bought out Cigna?
HCSC will acquire Cigna’s Medicare Advantage, Part D, supplemental benefits, and CareAllies businesses, with the deal expected to close in the first quarter of 2025.
Did Blue Cross buy Cigna?
No, Blue Cross has announced its intention to acquire Cigna’s Medicare businesses for $3.3 billion, pending regulatory approval.
Will Cigna sell Medicare unit to HCSC for $3.7 B?
Yes, Cigna has entered into a definitive agreement to sell its Medicare unit to Health Care Service Corporation (HCSC) for approximately $3.7 billion, freeing up cash for potential acquisitions in other areas.
What are the benefits of Cigna’s Medicare Supplement plans?
Cigna’s Medicare Supplement plans offer comprehensive coverage for costs not covered by traditional Medicare, as well as additional benefits like prescription drug coverage and foreign travel emergency benefits.
Speak to the Professionals about Medigap Plans and Original Medicare
If you find understanding the benefits involved with Original Medicare and Medigap Plans challenging, you’re not alone. Whether it’s a Medigap plan, or you want to know more about the Cigna Medicare Supplement in 2025, we can help. Call our team at 1-888-891-0229 for a free consultation or complete the contact form on this site, and an expert will call you back at a convenient time.
We have decades of experience advising our clients on the complexities of Medicare and Medigap plans, the benefits, costs and deductibles. We’ll ensure you get the best rate in your state and advice you can trust.
Russell Noga is the CEO and Medicare editor of Medisupps.com. His 15 years of experience in the Medicare insurance market includes being a licensed Medicare insurance broker in all 50 states. He is frequently featured as a featured as a keynote Medicare event speaker, has authored hundreds of Medicare content pages, and hosts the very popular Medisupps.com Medicare Youtube channel. His expertise includes Medicare, Medigap insurance, Medicare Advantage plans, and Medicare Part D.