Cigna (CI) to Widen Access to Individual Health Plans in 2023
Cigna Corporation CI recently introduced an expansion outline for its individual and family health plans available on the Affordable Care Act (ACA) Marketplace for 2023. The expansion awaits final regulatory approvals.
The above-mentioned plans are offered by CI through its U.S. Government business. Individuals below 65 years and without the option to enroll in an employer or government program like Medicare or Medicaid can avail of the above-mentioned plans.
Cigna intends to bolster the geographic reach of its ACA Marketplace exchange plans across areas with solid provider partnerships in place. Logically, it aims to take its health plans across the three untapped states of Texas, Indiana and South Carolina. Simultaneously, CI aims to foray into surplus counties of Georgia, Mississippi and North Carolina.
The newer markets that the health insurer intends to delve into are expected to aid it in reaching out to roughly 730,000 additional customers next year. Cigna’s endeavor to cover more people across the United States with cost-effective and advanced quality care for better health outcomes is clearly reflected in its latest expansion plan.
During the 2023 Open Enrollment Period, which will start Nov 1, 2022 and continue through Jan 15, 2023, individuals and families can opt for health care coverage by enrolling in Cigna’s health plan on the national individual exchange or a state-based exchange. Once the Open Enrollment Period commences, the health plans purchased within Dec 15, 2022 will be effective the beginning of next year.
The individual and family plans for 2023 will provide several enhanced benefits for its members. The new features include anytime access to the primary care physician network of the virtual care provider MDLIVE to avail of routine visits remotely, wellness screenings free of cost and personalized support for chronic condition management through digital tools, such as myCigna mobile app and Cigna One Guide.
The latest announcement also marks Cigna’s continuous efforts to further solidify its presence on the ACA Marketplace. The health insurer continues to have a significant presence on the marketplace for nearly a decade. The list of markets that CI intends to penetrate this time will allow it to provide individual and family plans on the individual exchanges altogether across 363 counties of 16 states.
Such expansion endeavors are likely to provide an impetus to the U.S. Government business of Cigna through which, it offers Medicare Advantage, Medicare Supplement and Medicare Part D plans besides delivering individual and family plans. The business has performed well to date, courtesy of continuous plan enhancements, contract wins, growing membership and collaborations with renowned healthcare systems.
With more customers from different U.S. regions getting an opportunity to opt for improved individual and family plans as a result of this latest move, Cigna’s membership base is likely to get a boost. Concurrently, membership growth is usually accompanied by higher premiums, the most significant contributor to a health insurer.
Shares of Cigna have gained 35.7% in a year compared with the industry’s growth of 26.7%.
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Zacks Rank & Key Picks
Cigna currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Medical space are The Ensign Group, Inc. ENSG, AMN Healthcare Services, Inc. AMN and Molina Healthcare, Inc. MOH. While AMN Healthcare flaunts a Zacks Rank #1 (Strong Buy), Ensign Group and Molina Healthcare carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ensign Group’s earnings beat earnings estimates in three of the trailing four quarters and matched the mark once, the average surprise being 1.32%. The Zacks Consensus Estimate for ENSG’s 2022 earnings suggests an improvement of 13.2%, while the same for revenues indicates growth of 13% from the respective year-ago reported figures. The consensus mark for ENSG’s 2022 earnings has moved 0.5% north in the past 30 days.
The bottom line of AMN Healthcare outpaced earnings in each of the trailing four quarters, the average being 15.66%. The Zacks Consensus Estimate for AMN’s 2022 earnings suggests an improvement of 40.2% from the year-ago reported figure. The same for revenues implies 28.5% growth from the year-ago reported figure. The consensus mark for AMN’s 2022 earnings has moved 8.2% north in the past 30 days.
Molina Healthcare’s earnings beat estimates in each of the trailing four quarters, the average surprise being 3.22%. The Zacks Consensus Estimate for MOH’s 2022 earnings suggests an improvement of 29.8%, while the same for revenues indicates growth of 12.5% from the respective year-ago reported figures. The consensus mark for MOH’s 2022 earnings has moved 0.7% north in the past 30 days.
Shares of Ensign Group and Molina Healthcare have gained 4.8% and 25.2%, respectively, in a year. However, the AMN Healthcare stock has dropped 9% in the same time frame.
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