Cigna reported nearly $1.2 billion in fourth quarter net income as it continues to reap profits as both a health insurance company and a diversified provider of healthcare services.
Cigna Friday said net income rose slightly to $1.17 billion, or $3.83 per share, in the fourth quarter ended Dec. 31, 2022 compared to $1.12 billion, or $3.39 per share, in the year-ago quarter. Revenues, henceforth, were flat at $45.75 billion compared to $45.69 billion in the year-ago period.
Still, Cigna’s profits and customer base from its health insurance business and Evernorth’s healthcare services, which include pharmacy benefit management, continue at a healthy pace.
Cigna’s total customer relationships, which include those in health plans and those who have coverage administered by Cigna, were up 2% to 189.7 million as of the end of 2022 compared to 185.7 million at the end of 2021. The biggest chunk of those customers – – the pharmacy benefit customers – – were slightly down to 105.6 million in the fourth quarter compared to 107.3 million at the end of 2021.
But total medical customers, led by Cigna’s US commercial business, were up by almost 1 million to 18 million from 17.08 million at the end of 2021. “The total medical customer base at the end of 2022 grew 5% to 18 million, an increase of 923,000 customers from December 31, 2021, primarily driven by growth in US Commercial, partially offset by a decrease in US Government inclusive of the divestiture of the Medicaid business,” Cigna said in its earnings report.
Cigna management is forecasting more growth is ahead, releasing a 2023 forecast that calls for total medical customer growth of “at least” 1.2 million. On a conference call with analysts Friday morning, Cigna said this new membership would come from commercial and government-subsidized health plans including Medicare Advantage and individual coverage known as Obamacare that is sold on public exchanges,
Meanwhile, Cigna is projecting a total of 2023 adjusted revenue of $187 billion and adjusted income from operations of at least $24.60 per share. For 2022, Cigna reported net income for 2022 was $6.7 billion, or $21.30 per share on total revenue of $180.5 billion.
“We are carrying great momentum into 2023,” said David Cordani, chairman and chief executive officer. “Last year was a pivotal year of performance and growth for our company as individuals and employers around the world counted on Cigna Healthcare in a dynamic time, and Evernorth further expanded its health services reach and impact. We are well positioned to continue innovating and growing as we work to improve the health and vitality of all those we serve.”