8-KRegulation FD

Cigna Group 8-K Report, Regulation FD Disclosure (Jan 7, 2019)

Filed January 7, 2019For Securities:CI

Summary

Cigna Group filed an 8-K on January 6, 2019, to disclose forward-looking statements and an update on the integration of Express Scripts. The company anticipates significant growth in its global medical customer base for 2019, projecting an increase of 300,000 to 400,000 customers, with expected mid-single digit percentage growth in individual Medicare Advantage customers. Additionally, Cigna reaffirmed Express Scripts' previously stated expectation for 2% to 3% growth in core business adjusted claims for 2019. Furthermore, Cigna and OptumRx have agreed to a transition of pharmacy benefit management services, including non-specialty drug mail order fulfillment, Medicare claims processing, and retail contracting, with the full transition expected by the end of 2020. This move is to align with the integration of Express Scripts. Investors are directed to a presentation at the J.P. Morgan Healthcare Conference for further details.

Key Highlights

  • 1Cigna expects global medical customer growth of 300,000 to 400,000 in 2019.
  • 2Mid-single digit percentage growth is anticipated for individual Medicare Advantage customers in 2019.
  • 3Continued strong growth is expected in international markets.
  • 4Express Scripts' expectation for 2019 core business adjusted claims growth of 2% to 3% is affirmed.
  • 5Cigna and OptumRx have agreed to transition certain pharmacy benefit management services by December 31, 2020, to facilitate Express Scripts integration.
  • 6Key services transitioning from OptumRx include non-specialty drug mail order fulfillment, Medicare claims processing, and retail contracting.

Frequently Asked Questions

Cigna anticipates adding 300,000 to 400,000 global medical customers in 2019. They also expect mid-single digit percentage growth in individual Medicare Advantage customers and continued strong growth in international markets. Express Scripts' core business adjusted claims are projected to grow by 2% to 3%.

The agreement with OptumRx involves the transition of specific pharmacy benefit management services (non-specialty drug mail order fulfillment, Medicare claims processing, and retail contracting) from OptumRx to Cigna. This transition is being undertaken to align with the planned integration of Express Scripts and is expected to be completed by December 31, 2020.

Cigna's full year 2018 results were scheduled to be discussed in a press release and investor conference call on February 1, 2019.

Investors can listen to Cigna's presentation at the J.P. Morgan Healthcare Conference live over the internet via a webcast. Details for accessing the webcast were provided in the filing, including a link and instructions to visit at least 15 minutes prior to the presentation.