CVS Health and Cigna on Tuesday released details on their government-backed health insurance plans for next year for people aged 65 and above, saying some members would pay $0 premium monthly for prescription drugs.
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The managed care company's total revenue and non-GAAP EPS climbed higher in the second quarter. Cigna's dividend is comfortably covered by non-GAAP EPS and free cash flow. Shares of the stock appear to be priced at a 17% discount to fair value.
The FTC is suing CVS Health, Cigna, and UnitedHealth Group because of alleged uncompetitive PBM practices. Their PBM units are major revenue sources for all three healthcare companies.
CNBC's Eamon Javers joins 'The Exchange' to report the latest on the FTC's lawsuit against drug middlemen for allegedly inflating insulin prices.
The U.S. Federal Trade Commission said on Friday it was suing the country's three largest pharmacy benefit managers, accusing them of abusing their power and rigging the pharmaceutical supply chain to artificially inflate the cost of insulin.
I am initiating a 'Buy' rating for Cigna with a one-year target price of $450 per share, driven by strong Specialty and Cigna Healthcare growth. Cigna's Specialty Pharmacy and Care Market, accounting for 30% of revenue, is poised for above-market growth due to its leadership in the chronic market and biosimilar offerings. Cigna Healthcare's divestiture of low-margin Medicare businesses will allow focus on employer-sponsored plans, targeting small and mid-size enterprises, contributing to 7% organic revenue growth.
As the telehealth sector is projected to reach $450 billion by 2032, Cigna Healthcare recently launched an “E-Treatment” option via MDLIVE, offering customers access to urgent care from board-certified doctors without the need for direct phone or video consultations.
Cigna Group's pharmacy benefit manager Express Scripts on Tuesday sued the U.S. Federal Trade Commission, alleging that the agency's July report on the PBM industry was biased and defamatory and asking the court to order the FTC to withdraw the report.
One of the country's biggest pharmacy-benefit managers, Cigna Group's CI 0.58%increase; green up pointing triangle Express Scripts, sued the Federal Trade Commission, demanding a retraction of a recent report critical of the companies that negotiate drug spending.
CI's new launch, a new E-Treatment option, is expected to improve patient satisfaction and operational efficiency.
CI benefits from improved premiums resulting from an extensive customer base. Buyouts and adequate operating cash flows are other tailwinds.