Cigna Corp. disclosed today that the federal government is suspending marketing and enrollment in all Cigna Medicare Advantage and Standalone Prescription Drug Plan Contracts, effective today.
The insurance giant, which disclosed the suspension of part of its government-backed policies in a securities filing this morning, is trading lower in pre-market trading in response to the announcement. Cigna said the suspension by the U.S. Centers for Medicare & Medicaid Services (CMS) does not impact current Cigna Medicare Advantage and Medicare Part D enrollees' benefits or plans and Cigna continues to market and sell a wide range of private insurance plans.
"CMS imposed sanctions due to deficiencies discovered with Cigna's operations of its Parts C and D appeals and grievances, Part D formulary and benefit administration, and compliance program," the company said in a Securities and Exchange Commission filing released today. "Cigna is working to resolve these matters as quickly as possible and is cooperating fully with CMS on its review. Cigna is committed to its customers and ensuring that its customers have access to the quality healthcare, customer service and prescription drugs that they need."
Cigna employs more than 1,200 employees at claims processing operations in Chattanooga.