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Cigna's Health Benefits Unit Launches a New E-Treatment Option

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The Cigna Group’s (CI - Free Report) Cigna Healthcare division, has unveiled a new E-Treatment option via MDLIVE by Evernorth. This new treatment option will provide customers with a flexible option for urgent care through phone or video consultations. This option is available to Cigna Healthcare’s U.S. customers who have insurance coverage through an employer or individual marketplace.

This innovative service allows users to manage conditions such as allergies, urinary tract infections, and minor respiratory issues by submitting a virtual clinical interview on the MDLIVE platform. Within roughly one hour, they receive a diagnosis and personalized treatment plan. This move bodes well for CI as this would free up doctors for more serious cases, enhancing clinician productivity.

This launch aligns with Cigna’s commitment to providing convenient healthcare solutions, allowing customers to focus on their health while maintaining busy schedules. Early results indicate that 99% of patients are satisfied, and over one third are using MDLIVE's virtual services for the first time. The platform, available to many Cigna Healthcare customers at no cost, is expected to significantly boost Cigna's service appeal. Customers also have access to primary care, dermatology and behavioral.

Making care accessible in various ways is expected to enhance patient convenience and retain existing customers, along with attracting new ones. This would lead to improved top-line growth in the future. Operational efficiencies and potential reduction in any claim costs might lead to improved profitability in the future. This new launch should aid Cigna Healthcare achieve its long-term average annual adjusted earnings growth in the band of 7-10%. 

Cigna’s Zacks Rank & Price Performance

CI currently carries a Zacks Rank #3 (Hold). Shares of Cigna have gained 19.5% in the year-to-date period compared with the industry’s 8.6% rise.

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Stocks to Consider

Some better-ranked stocks in the Medical space are Universal Health Services, Inc. (UHS - Free Report) , The Ensign Group, Inc. (ENSG - Free Report) and HealthEquity, Inc. (HQY - Free Report) . Universal Health currently sports a Zacks Rank #1 (Strong Buy), and Ensign Group and HealthEquity carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Universal Health’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 14.58%. The consensus estimate for UHS’ 2024 earnings indicates a rise of 51% from the year-ago number. The consensus mark for revenues indicates growth of 9.8% from the year-ago figure. 

Ensign Group’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 1.40%. The consensus estimate for ENSG’s 2024 earnings indicates a rise of 14.1% from the year-ago number. The consensus mark for revenues implies an improvement of 13.1% from the year-ago figure. 

HQY beat earnings estimates in each of the last four quarters, with an average surprise of 19.8%. The Zacks Consensus Estimate for HealthEquity’s current-year earnings implies a 36.9% increase from the year-ago reported figure. The consensus mark for its current-year revenues is pegged at almost $1.2 billion, which indicates a 17.7% year-over-year increase.

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