Cigna beats profit estimates on lower-than-expected costs, pharmacy benefit boost

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Cigna beats profit estimates on lower-than-expected costs, pharmacy benefit boost
CignaMedicare AdvantagePharmacy Benefit Management
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The industry has been contending with elevated medical costs since late last year, as older adults catch up on delayed procedures, and lower-than-expected...

- Cigna reported a second-quarter profit on Thursday that beat Wall Street estimates, helped by lower-than-expected medical costs and strength in its pharmacy benefit management unit.

Compared to UnitedHealth and Humana, Cigna has a much smaller presence in the Medicare Advantage market and is in the process of selling its MA business to Health Care Service Corp.While the company saw its medical care ratio - the percentage of premiums spent on medical care - rise to 82.3% from 81.2% a year earlier, it was lower than analysts expectations of 82.43%, according to LSEG estimates.

The company reported an adjusted profit of $6.72 per share, compared with analysts' average estimate of $6.41."Every requisition that they get is much more thoughtful in their approach, and if anything, it's taking a bit longer for them to hire individuals.

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Cigna Medicare Advantage Pharmacy Benefit Management Second-Quarter Profit

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