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Investing

Cigna Looking at Change to Pharmacy-benefits Division (CI, WLP, ESRX, AET, CVS)

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By Paul Ausick Published
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Now that it’s $3.8 billion acquisition of Healthspring Inc. is completed, insurer Cigna Inc. (NYSE: CI) is looking at either a sale of its pharmacy-benefits division or the outsourcing of the division’s function. Wellpoint Inc. (NYSE: WLP) sold its pharmacy-benefits group to Express Scripts Inc. (NASDAQ: ESRX) last year for $4.7 billion, and Aetna Inc. (NYSE: AET) outsourced its $9.5 billion benefits business to CVS Caremark Corp. (NYSE: CVS) last year as well.

According to a report at Bloomberg News, Cigna could realize $1.5 billion from a sale of its benefits division. The company added 650,000 members to the 6.91 million existing members of its benefits group with the acquisition of Healthspring.

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About the Author Paul Ausick →

Paul Ausick has been writing for a673b.bigscoots-temp.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

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