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Cigna (CI) to Offer Low-Cost Health Plans in 11 Texas Counties

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Cigna Corporation (CI - Free Report) recently announced that it is offering its health plans in individual marketplace for 11 counties in Texas. The Open Enrollment Period is expected to start on Nov 1 and end on Jan 15 of next year. It will provide affordable healthcare coverage in 2023.

The move is expected to boost Cigna’s membership while expanding its presence in Texas. Given the growing demand for virtual care, CI is expected to offer 24/7 access to virtual primary care through MDLIVE's primary care physician network. Its $0 benefits plans, incentives for healthy practices and low-cost prescription drugs are expected to rope in a large number of clients.

The 11 counties where Cigna health insurance is being offered are Dallas, Tarrant, Collin, El Paso, Lubbock, Ellis, Johnson, Kaufman, Rockwall, Hunt and Crosby.

Moves like this enable Cigna to grow its business. Its diversified product portfolio, wide agent network and superior service are major growth drivers. The company ended the second quarter of 2022 with 17.8 million medical members, up 5.2% year over year.

Cigna’s customer growth came from middle markets and select markets within U.S. commercial, individual and Medicare Advantage markets. The company’s consistent focus on providing affordable, predictable and simple solutions to its customers poises it well for the long haul. Cigna anticipates adjusted revenues for 2022 at a minimum of $178 billion, suggesting an increase from the 2021 level of $174.1 billion. The Zacks Consensus Estimate for 2023 revenues is pegged at $189.1 billion.

Price Performance

Shares of Cigna have increased 44.5% in the past year against the 16% fall of the industry it belongs to.

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Zacks Rank & Other Key Picks

Cigna currently has a Zacks Rank #2 (Buy). Some other top-ranked stocks in the medical space are Centene Corporation (CNC - Free Report) , Humana Inc. (HUM - Free Report) and Molina Healthcare, Inc. (MOH - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Centene’s 2022 bottom line indicates a 10.7% year-over-year increase. CNC’s earnings beat estimates in three of the last four quarters and missed once, the average surprise being 3%.

The consensus mark for Humana’s 2022 earnings per share signals a 21.2% year-over-year rise. HUM’s earnings beat estimates in each of the last four quarters, the average surprise being 9.1%.

The Zacks Consensus Estimate for Molina Healthcare’s 2022 bottom line indicates a 30.4% year-over-year increase. MOH’s earnings beat estimates in each of the last four quarters, the average surprise being 3.2%.


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