Cigna plans to grow its business of selling individual coverage under the Affordable Care Act for 2023 to three new states.
Cigna, which has been a long-standing provider of individual coverage under the Affordable Care Act with 340,000 enrollees in such health plans today, will have “the potential to reach approximately 730,000 additional customers in 2023,” the company said Monday. The three new states are: Texas, Indiana and South Carolina.
“With this expansion, pending final regulatory approvals, Cigna will offer individual and family plans on the individual exchanges in 363 counties spanning 16 states, including Arizona, Colorado, Florida, Georgia, Indiana, Illinois, Kansas, Mississippi, Missouri, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas, Utah, and Virginia,” the company said in its announcement.
Cigna is among several health insurance companies expanding into new markets for 2023 to sell individual coverage, also known as Obamacare, on public exchanges under the ACA.
The decisions to expand are partly driven by a much better regulatory environment thanks to the Biden administration and the Democratic-controlled Congress, which have made moves to bolster the health law and expand health insurance options to more Americans.
As one example, the Biden administration Friday announced an “historic investment of nearly $100 million” on “navigators” that help connect people to health coverage.
“This is a historic investment to connect people to high-quality, affordable health care,” Health and Humana Services Secretary Xavier Becerra said. “Last year, our investments helped result in the lowest uninsured rate in our nation’s history. This year, we’re doubling down on our efforts to ensure people get the insurance they need. Navigators critically help us reach people where they are, educating them on their health insurance options that can be lifesaving.”
The spending on navigators is also expected to boost enrollment, which will be good for health insurers.
But the market will be competitive given expansions of health insurers offering more benefits than past years.
“As a society, we continue to see a significant need for a competitive and sustainable individual market, which is why Cigna has maintained its presence on the ACA Marketplace since 2014 and continues to expand into new areas,” Charles Berg, president of Cigna’s U.S. Government business said. “By expanding into geographic areas where we have strong provider partnerships, we are able to offer more people access to affordable, quality care that helps create superior health outcomes.”
Life Sciences, Forbes – Healthcare