April 30, 2020 / Bruce Japsen, Senior Contributor
Cigna is expecting “headwinds” in its commercial health insurance business as employer clients struggle to maintain medical benefits in a U.S. economy hit hard by the coronavirus strain COVID-19.
Like other companies selling health insurance coverage to large and small businesses, Cigna is bracing investors for the potential employer clients won’t maintain their benefits. That is expected to hit health insurers hard and Cigna’s commercial medical plan business is sizable with more than 14 million members.
Health insurer client businesses hit hard by stay at home orders that have shut down operations to prevent the spread of COVID-19 have been shedding workers who may lose their health benefits in the future. Thus far, Cigna said 50% of its commercial customers that are “seeing an employment disruption are maintaining healthcare benefits,” executives confirmed Thursday based on what they have seen in April.
