Cigna explores sale of Medicare Advantage business, Reuters reports

Cigna Group is exploring the sale of its Medicare Advantage business, which provides additional benefits to those covered by federal health insurance, a move that would mark a reversal of its expansion in the sector, Reuters’ David Carnevali reports, citing people familiar with the matter. Cigna, which got into the Medicare Advantage business with its $3.8B acquisition of HealthSpring in 2011, would be backing away at a time the U.S. government is tightening its purse strings in reimbursing health insurers for their services should it go through with the move, the author notes. Cigna is working with an investment bank to evaluate options for its Medicare Advantage business, which could fetch several billions of dollars in a potential divestment, the sources said.