Cigna $CI will exit the Affordable Care Act's individual insurance marketplaces at the end of 2026, a move that will require its 369,000 ACA enrollees to find new coverage.
The insurer told investors on its Q1 earnings call that it sees no path to meaningful growth in the individual market
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Cigna $CI will exit the Affordable Care Act's individual insurance marketplaces at the end of 2026, a move that will require its 369,000 ACA enrollees to find new coverage.
The announcement came Thursday on the company's first-quarter earnings call. According to COO Brian Evanko, the decision came down to two considerations: a lack of opportunity to build the ACA business into a meaningful operation, and a desire to redirect resources toward units the company views as core to its future, such as Evernorth specialty and care services, pharmacy benefits, and employer-based coverage.
Those 369,000 enrollees are spread across 11 states and represent a small slice of Cigna's overall 18.3 million members, the company said. Thursday's earnings report also brought good news for investors: results came in ahead of expectations, with $1.7 billion in profit, and the company lifted its full-year earnings guidance.
As The Wall Street Journal noted, Cigna's departure mirrors a trend among large carriers: CVS Health $CVS's Aetna made a similar move when it withdrew from the ACA market at the beginning of this year, making Cigna the second major insurer to do so in quick succession.
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