Cigna Reports Positive Q3 2023 Results Amid Focus on Sustainable Growth and Medicare Expansion

Ben H.

Hatched by Ben H.

Jun 18, 2024

3 min read


Cigna Reports Positive Q3 2023 Results Amid Focus on Sustainable Growth and Medicare Expansion

Cigna (CI) - a carrier with a large Medicare presence - recently reported its Q3 2023 results, showcasing growth and positive financial performance. In this article, we will delve into the key highlights of their report and explore how Cigna's purpose aligns with their achievements.

  • 1. Medicare Advantage Members Show Significant Growth

Cigna's Medicare Advantage membership experienced a notable increase, growing from 541,000 to 599,000 year-over-year, representing an 11% growth. This expansion demonstrates Cigna's success in attracting and serving seniors who choose Medicare Advantage as their preferred healthcare coverage option.

  • 2. Medicare Supplement & Medicaid Members Experience a Decline

While Medicare Advantage experienced growth, Cigna's Medicare Supplement and Medicaid membership witnessed a decline, decreasing from 487,000 to 468,000 year-over-year, reflecting a 4% decrease. It's important to note that Cigna reports Medicare Supplement and Medicaid together, with Medicare Supplement accounting for the majority of this segment.

  • 3. Total Revenues and Operating Profit Show Positive Trends

Cigna's total revenues grew from $45.3 billion to $49.0 billion year-over-year, representing an 8% increase. This growth can be attributed to the majority of their revenues coming from their Pharmacy Segment. Additionally, the total operating profit increased from $2.14 billion to $2.24 billion year-over-year, showcasing a 5% growth and a profit margin of 4.6%.

  • 4. Robust Performance in the Healthcare Segment

Cigna's Healthcare Segment displayed impressive growth, with revenues increasing from $11.1 billion to $12.7 billion year-over-year, representing a 15% growth. Furthermore, the Healthcare Segment's loss ratio decreased from 80.8% to 80.5% year-over-year, indicating improved efficiency in managing medical costs compared to premium revenue. Healthcare Segment expenses also decreased from 22.1% to 21.7% of revenue year-over-year, which includes selling, general, and administrative expenses. The Healthcare Segment's operating profit grew from $950 million to $1.02 billion year-over-year, with a profit margin of 8.0%.

  • 5. Focus on Sustainability and Inclusivity

In their 2022 ESG Report, Cigna emphasizes their commitment to creating a more sustainable, inclusive, and growing future for all. They strive to achieve this by accelerating sustainable and inclusive growth through direct and measurable impact in partnership with their clients. While Cigna's Q3 results demonstrate their financial success, it raises the question of how their purpose aligns with their less purpose-driven work as a firm.

Insights and Actions:

  • 1. Maximizing Growth Potential in Medicare Advantage

With the significant growth in Medicare Advantage membership, Cigna should continue to focus on expanding its presence in this market. By offering innovative and comprehensive Medicare Advantage plans, Cigna can attract more seniors and provide them with quality healthcare services.

  • 2. Addressing the Decline in Medicare Supplement & Medicaid Membership

To reverse the decline in Medicare Supplement and Medicaid membership, Cigna should analyze the reasons behind this decrease and develop targeted strategies to attract and retain members in these segments. This may involve enhancing the value proposition of their Medicare Supplement plans and improving accessibility to Medicaid services.

  • 3. Enhancing Sustainability Efforts and Purpose Alignment

As Cigna endeavors to create a more sustainable and inclusive future, they should ensure that their purpose-driven initiatives align with their overall business operations. By integrating sustainability practices into their core operations and fostering a culture of purpose-driven decision-making, Cigna can enhance its societal impact and strengthen its reputation as a responsible corporate citizen.

In conclusion, Cigna's Q3 2023 results highlight their growth in Medicare Advantage membership, positive financial performance, and commitment to sustainability. As they continue to expand their presence in the Medicare market, Cigna should also address the decline in Medicare Supplement and Medicaid membership. By aligning their purpose-driven initiatives with their overall business operations, Cigna can create a more sustainable and inclusive future for all while maintaining their financial success.

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