COVID-19Financial

Cigna Expects Headwinds As Coronavirus Hits Employer Health Benefits

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.

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Mike Adams

Mike Adams is a medical device sales leader with extensive clinical experience in spine and biologics and a nationwide distribution network built over the last 10+ years in the industry. He has held various leadership positions in healthcare and device including Distributor Partner, Hospital COO and Spine VP of Sales. He currently leads the commercialization strategy for OrthoSpine Partners and is a Distributor Principal at Novel Medical. Because of his unique career path, Mike has the ability to see the healthcare business from multiple perspectives making him passionate about building strategic partnerships that help reduce overall costs, drive innovation, and cultivate growth for new markets.

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