Summary
Cigna Group (CI) filed an 8-K on January 13, 2020, primarily to disclose forward-looking guidance ahead of investor meetings at the J.P. Morgan Healthcare Conference. The company provided expectations for its 2020 performance, focusing on key growth metrics for its medical customers and pharmacy services. Key takeaways include anticipated growth in total medical customers, with a specific target for individual Medicare Advantage enrollment. Furthermore, Cigna detailed its projections for Health Services adjusted pharmacy scripts, incorporating expected volumes from OptumRx insourcing, the Prime Therapeutics collaboration, and organic growth. This update provides investors with an early outlook on the company's strategic growth drivers and operational targets for the upcoming year.
Key Highlights
- 1Cigna expects 2020 total full-year medical customer growth of 150,000 to 250,000 over its year-end 2019 base.
- 2Individual Medicare Advantage growth is projected at 60,000 to 70,000 customers in 2020, representing 13% to 16% growth.
- 32020 Health Services adjusted pharmacy scripts are expected to be between 1.47 billion and 1.50 billion.
- 4This pharmacy script growth represents an increase of 250 million to 280 million scripts, or 20% to 23%, over 2019.
- 5The pharmacy script outlook includes volumes from insourcing from OptumRx and the Prime Therapeutics LLC collaboration.
- 6Organic growth of 25 million to 35 million adjusted pharmacy scripts is also anticipated.
- 7Full year 2019 results will be discussed on a February 6, 2020, earnings call.