Cigna CEO David Cordani will inform analysts tomorrow that his company hopes to add between 300,000 and 500,000 medical consumers during the year of 2017. If the growth comes in at the low range, that would be about the similar growth rate as between the time period of September 30, 2015 and Sept. 30, 2016, when entire customers increased over 330,000. The overall increase, which comes from employer-based health care, international sales and individual healthcare, will outweigh the anticipated decline of 50,000 Medicare Advantage customers.
At the end of the 3rd quarter of 2016, the government business of Cigna had grown about 55,000, but that was before open enrollment for Medicare Advantage or Medicare Advantage Customers. Cigna was barred from signing up new clients because it hasn’t resolved the operational issues it had that caused government regulators to enact a ban on latest enrollment in the month of January 2016. At the end of September, Cigna said it had spent $80 million so far to try to fix the issues.
The declaration on what Cigna is projecting; made in a filing Tuesday with the Securities and Exchange Commission, also involved disclosure about what the company has been spending on the Anthem-Cigna merger.
Cigna claimed that it spent $146 million on “merger-related transaction costs” in the year of 2016, which is an extra $23 million since the end of September. In the year of 2015, Cigna spent $35 million.
The Department of Justice sued to prevent Indianapolis-based Anthem from purchasing Cigna, and both agencies are awaiting a ruling from a federal judge on whether the merger can go forward.
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