Solely two months into 2021 and the medical insurance area is buzzing with exercise.
The newest in a string of massive strikes is Cigna’s plans to purchase telehealth company MDLive via its well being companies portfolio Evernorth. This acquisition information comes on the heels of Oscar filing an IPO and CVS Well being announcing plans to re-enter the Reasonably priced Care Act exchanges in 2022.
The businesses usually are not disclosing the acquisition worth, a Cigna spokesperson mentioned in an e mail. The transaction is anticipated to shut within the second quarter of the 12 months pending customary closing and regulatory approvals. Cigna doesn’t anticipate the acquisition to change its projected 2021 adjusted earnings per share of a minimum of $20.
The medical insurance large launched Evernorth in September. Evernorth is payer-agnostic and supplies a platform for distributing well being options for well being plans, employers and authorities organizations. Its suite of merchandise consists of fertility answer FamilyPath and psychological well being platform inMynd.
With the addition of MDLive, Evernorth will be capable of supply a 24/7 digital care supply platform that has an present shopper base, supplier community and model recognition amongst clients.
“Combining MDLive’s platform and powerful community for digital suppliers with our complete care options, we will probably be higher positioned to optimize the care journey to enhance affordability and accessibility, and to ship superior assist to well being plans as they advance their very own care supply fashions for the long run,” mentioned Tim Wentworth, CEO of Evernorth, in a information launch.
Collectively, Evernorth and MDLive goal to supply an end-to-end affected person care expertise that features sooner referrals and extra handy entry to well being companies.
For MDLive, the transaction will assist speed up its means to serve extra clients and construct new companies, mentioned Charles Jones, chairman and CEO of the telehealth supplier, in a information launch.
“Changing into a part of the Evernorth portfolio is a chance for MDLive to affix a company that enhances our work, and has been a long-time associate and investor in our enterprise,” mentioned Jones.
Cigna and MDLive’s relationship goes back to at least 2013 when the payer added the telehealth supplier to its advantages portfolio. That relationship has solely grown over time. In 2018, MDLive secured a $50 million progress funding led by Cigna, Well being Care Service Company and Well being Velocity Capital.
Then, final 12 months, Cigna started giving members access to on-line behavioral well being companies via MDLive. Additionally in 2020, the payer started providing virtual care for preventive checkups via MDLive’s main care platform.
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