Here are four things to know about Cigna’s results.
1. Cigna grew revenues by 5.9 percent to $10.5 billion in the fourth quarter ended Dec. 31. That’s compared to $9.9 billion recorded in the same period a year prior. Cigna attributed the increase to membership growth across its commercial insurance segments and a 6.8 percent uptick in premiums.
2. At the same time, Cigna saw benefits and expenses increase in the fourth quarter of 2017 to $9.8 billion, up 4.6 percent from $9.3 billion in the same period a year before. Year-over-year growth in medical costs and operating expenses contributed to the increase.
3. Cigna saw profits dip 30.4 percent in the fourth quarter of 2017 to $266 million, compared to $382 million reported in the same period a year prior. Despite a decline in profits in the fourth quarter, Cigna saw full-year 2017 net income grow 19.8 percent to $2.2 billion. That’s up from $1.9 billion in fiscal year 2016.
4. Due to net financial benefits of U.S. tax reform, Cigna raised minimum wage for its U.S. employees to $16 per hour and gave salary increases to employees above $16 an hour. Cigna anticipates the move will total $15 million-plus.
More articles on payer issues:
Anthem Q4 profits surpass $1B after one-time tax benefit: 3 things to know
Anthem’s discretionary ED policy lands patient with $12k bill: 8 things to know
9 payer-provider contract disputes, resolutions in January
Becker’s 3rd Annual Fall Chief Pharmacy Officer Summit is the top tier event that the people leading the future of pharmacy convene. This 3-day event is built specifically for Chief Pharmacy Officers and senior pharmacy leaders. The sessions examine the workforce, financial and clinical priorities shaping pharmacy today. Becker’s is where candid discussions flourish and new ideas thrive. Becker's 3rd Annual Fall Chief Pharmacy Officer Summit
