Cigna $CI -1.03% will exit the Affordable Care Act's individual insurance marketplaces at the end of 2026, a move that will require its 369,000 ACA enrollees to find new coverage.
The announcement came Thursday on the company's first-quarter earnings call. According to COO Brian Evanko, the decision came down to two considerations: a lack of opportunity to build the ACA business into a meaningful operation, and a desire to redirect resources toward units the company views as core to its future, such as Evernorth specialty and care services, pharmacy benefits, and employer-based coverage.
Those 369,000 enrollees are spread across 11 states and represent a small slice of Cigna's overall 18.3 million members, the company said. Thursday's earnings report also brought good news for investors: results came in ahead of expectations, with $1.7 billion in profit, and the company lifted its full-year earnings guidance.
As The Wall Street Journal noted, Cigna's departure mirrors a trend among large carriers: CVS Health $CVS -1.65%'s Aetna made a similar move when it withdrew from the ACA market at the beginning of this year, making Cigna the second major insurer to do so in quick succession.
