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Government Suspends Cigna Insurance Enrollment

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Yashica Kaushal2 years ago

According to Reuters, the government has suspended enrollment into the health insurance group saying there are wide failures within the health insurance and prescription drug plans.

Issues Plaguing Cigna Corporation

According to Cigna Corporation’s regulator, the Centers for Medicare and Medicaid, a suspension order came after patients were being prevented from accessing medical services.

The accusation is that the corporation was not handling complaints properly from patients who were being denied coverage for health benefits and drugs. There were also problems with its covered drugs and officials said they were not handling prior authorization and requests properly.

There were years of non-compliance that posed “a serious threat to the health and safety of Medicare beneficiaries,” according to the Centers for Medicare and Medicaid in a letter addressed to the corporation.

The suspension is effective immediately but does not affect members currently enrolled.

Further Information about Issues and Company’s Course of Action

The Medicare Advantage business president, Herb Fritch, said that all problems would be addressed in full and in partnership with the CMS. He said they have identified a lot of the problem areas and are already starting to fix them.

Sanctions will remain in place until Cigna makes changes and the problems are deemed unlikely to reoccur. They are due to submit a corrective plan by Jan. 29.

Open enrollment has ended so the impact for 2016’s earnings will be minimal. Medicare Advantage makes up for 10 to 12 of the company’s earnings.


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