Cigna executives have confirmed that the insurer remains on schedule to finalize the $3.7 billion sale of its Medicare Advantage (MA) business to Health Care Service Corporation (HCSC) in the first quarter of 2025, aligning with the company’s initial projections.

The deal, first announced in January 2024, has secured all necessary federal antitrust approvals, with only one remaining state approval pending, according to Chief Financial Officer Brian Evanko.

“We have a very collaborative, constructive relationship with HCSC,” Evanko said.

As Cigna developed its bids for 2025, the company adopted a county-level approach, identifying strong growth potential in its more mature markets, particularly within HMO plans.

“The business is on solid footing,” Evanko added. “We’re tracking for attractive growth in 2025, and we’re ready to hand it off to HCSC.”

Cigna Reports Q4 Profit Decline Amid Rising Medical Costs

Despite the pending MA sale, Cigna reported $1.4 billion in profit for the fourth quarter of 2024, missing Wall Street expectations due to persistent elevated medical costs impacting the industry.

For the full year, the company’s profits totaled $3.4 billion—down from $5.2 billion in 2023.

Cigna’s medical loss ratio (MLR) reached 87.9% in Q4 2024, a notable increase from 82.2% in the same period the previous year. The full-year MLR stood at 83.2%, up from 81.3% in 2023. The company attributed this rise primarily to higher stop-loss medical costs, according to its earnings report.

However, Cigna exceeded revenue expectations for the quarter, reporting $65.6 billion—an increase from $51.1 billion in Q4 2023—according to Zacks Investment Research.