(Reuters) – Cigna has agreed to sell its Medicare business to Health Care Service Corp for $3.3 billion in cash, the Wall Street Journal reported on Wednesday.
Health Care Service will buy Cigna’s Medicare lines, including Medicare Advantage, Medicare supplement and Medicare drug plans, as well as a unit called CareAllies that works with physician groups and other healthcare providers, according to the report.
Cigna and Health Care Service did not immediately respond to requests for comment from Reuters.
The companies expect the deal to close in early 2025 subject to regulatory approvals, the report added.
Health Care Service holds a license to provide Blue Cross Blue Shield insurance plans in five U.S. states. It employs more than 27,000 people and 18.6 million members.
(Reporting by Sriparna Roy in Bengaluru; Editing by Sriraj Kalluvila)
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