By Shelby Livingston | June 16,
2017
The CMS has lifted sanctions it levied on Cigna Corp. in January
2016 after finding major problems with the health insurer's Medicare Advantage
plans, Cigna said Friday.
Bloomfield, Conn.-based Cigna may immediately resume marketing its Medicare Advantage and Part D plans, and begin enrolling members with effective dates beginning July 1, according to a Securities and Exchange Commission filing.
Cigna has spent the last year and a half trying to resolve issues with its Medicare Advantage plans. The federal sanctions barred the company from marketing and selling its Medicare Advantage policies to new beneficiaries.
The CMS said Cigna plans "posed serious threats to the health and safety of Medicare beneficiaries." For example, Cigna inappropriately denied medical care and prescription drugs to its members.
Cigna was also hit with lower Medicare Advantage star ratings last October following a CMS audit. Cigna had only 20% of its members in plans rated four stars or higher. The company has said it doesn't believe the star ratings reflect the quality of its plans.
The federal sanctions have dented Cigna's enrollment and revenue. Cigna enrolled 441,000 Medicaire members as of March 31, down 20% from the period in 2016. Cigna's Medicare premium revenue totaled $1.5 billion in the first quarter of 2017, down 18% over last year. Cigna previously said it expected the sanctions to weight on its revenue for the remainder of the year.
Cigna also said Friday that it expects about 60% of its Medicare Advantage customers will be in a plan with four stars or more for 2018.
Medicare's annual enrollment runs from Oct. 15 through Dec. 7.
Bloomfield, Conn.-based Cigna may immediately resume marketing its Medicare Advantage and Part D plans, and begin enrolling members with effective dates beginning July 1, according to a Securities and Exchange Commission filing.
Cigna has spent the last year and a half trying to resolve issues with its Medicare Advantage plans. The federal sanctions barred the company from marketing and selling its Medicare Advantage policies to new beneficiaries.
The CMS said Cigna plans "posed serious threats to the health and safety of Medicare beneficiaries." For example, Cigna inappropriately denied medical care and prescription drugs to its members.
Cigna was also hit with lower Medicare Advantage star ratings last October following a CMS audit. Cigna had only 20% of its members in plans rated four stars or higher. The company has said it doesn't believe the star ratings reflect the quality of its plans.
The federal sanctions have dented Cigna's enrollment and revenue. Cigna enrolled 441,000 Medicaire members as of March 31, down 20% from the period in 2016. Cigna's Medicare premium revenue totaled $1.5 billion in the first quarter of 2017, down 18% over last year. Cigna previously said it expected the sanctions to weight on its revenue for the remainder of the year.
Cigna also said Friday that it expects about 60% of its Medicare Advantage customers will be in a plan with four stars or more for 2018.
Medicare's annual enrollment runs from Oct. 15 through Dec. 7.
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