Cigna was banned from offering new Medicare Advantage plans after the CMS took issue with the way the insurer handled appeals and grievances and its drug formulary.
Cigna held 3% of the Medicare Advantage market last year, according to the Kaiser Family Foundation. That represented about 502,000 enrollees. The Bloomfield, Conn.-based insurer said in a U.S. Securities and Exchange Commission filing that it is working to resolve the issues and is fully cooperating with the CMS. Financial analysts said that they didn’t expect the news to affect Cigna’s pending $48 billion sale to Anthem. The deal, which would create the nation’s largest insurer, is being scrutinized by state and federal regulators for possible antitrust violations.