Cigna Can Return to Medicare Prescription-Drug Plans

By Maria Armental Features Dow Jones Newswires

Cigna Corp. can resume enrolling beneficiaries in Medicare Advantage and prescription-drug plans after the federal government lifted marketing sanctions in place since January 2016, the insurer said Friday in a securities filing.

Continue Reading Below

The Centers for Medicare and Medicaid Services had ordered the Connecticut-based firm to halt enrollment after finding a series of deficiencies following an audit. The government said beneficiaries had been inappropriately denied medical services that should have been covered, which raised issues with Cigna's coverage-appeals process.

On Friday, Cigna said it could resume marketing its Advantage-Prescription Drug and Medicare Part D plans with effective dates beginning July 1.

Cigna didn't immediately return a call seeking comment.

The sanctions blocked Cigna from participating in last year's annual enrollment, the time when those covered by Medicare can change their health plans and prescription drug coverage for the following year.

Cigna said in latest quarterly report that plan enrollment and revenue had been "materially impacted" by the federal government's decision. In its report for the period ended March 31, Cigna said management expected the trend to continue for the rest of the year.

Continue Reading Below

The open enrollment period for Medicare begins Oct. 15.

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

June 16, 2017 14:54 ET (18:54 GMT)