Cigna will not be signing up new customers during fall enrollment for its private Medicare plans following a CMS investigation which identified "widespread and systemic failures" in the payer's Medicare business, according to Bloomberg.
Here are four highlights:
1. In a regulatory filing, the payer said it likely will not fix the 'failures' before the enrollment session commences for the Medicare health insurance and drug coverage plans.
2. Nearly 533,000 customers were enrolled in Cigna's Medicare Advantage plans and 1.04 million in its Medicare Part D plans, as of June 30.
3. The issues CMS identified include how Cigna handled its drug coverage as well as appeals and grievances, with CMS stating it "determined that Cigna's conduct poses a serious threat to the health and safety of Medicare beneficiaries," according to Bloomberg.
4. A spokesperson said Cigna is cooperating with CMS and is working to address the identified issues.
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