Is Medicare unit making any profit? Share the revenue and profit numbers.
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If it wasn't for poor leadership and this upcoming divesture, Cigna would be a great position to grow it's Medicare business as our competitors are all shrinking their membership.
Medicare used to make money until they started trying to blend it into big Cigna. The allocations that Medicare was paying to "the enterprise" were unsustainable, therefore the creation of the dedicated Medicare operating model. If they had left it alone as a freestanding business, it would have continued to be profitable.
Everyone EXCEPT Cigna makes money with Med Adv. Cigna’s talent seems to be how well they run their plans in the ground. In a few years, they’ll be looking to buy out another carrier’s MA plans so they can get back in the game. CMS probably won’t write anymore contracts with CI so acquisition will be the only way back. CI will mismanage those plans and then the cycle starts again.
DMOM is a joke. Bunch of vended out of the box solutions. HCSC could have just done this themselves.
If you look around cornerstone was/is a complete nightmare in the test market.
DMOM was always going to lose money. They are completely revamping all MA systems for the sale. If you’re in the MA space you know how old and not user friendly our reporting was.
Yet the VP over all of it keeps getting promoted?? Ridiculous. Wonder whose you know what he has over the barrel.
Heard the Cornerstone and now DMOM project lost a ton of money!
Reducing the insane amount of Band 5 and Band 6 leaders and the non-stop zero value add business travel would get them halfway there.
Yes one of the only years it has made money
The fact is Medicare business revenue is around 7-8 billion$ but with negative profit of around 400-500 million $ that’s why Cigna spinning of Medicare business. I am not sure how hcsc is going to make profit out of it.
It's bleeding money
I don't know about now, but when I was with Cigna Medicare, my director stated our margins are in the red (this was earlier this year). My guess is it isn't profitable and Cigna isn't willing to invest heavily in the business, thus the HCSC sale makes sense.
Yes they are making a profit, but not enough for David. So he would rather sell it than put in a effort to keep up with the federal changes to keep it profitable.