Cigna’s profits jump thanks to employer-sponsored plans
Article excerpt
Cigna increased its 2026 earnings outlook following the second quarter, unbothered by inflated costs for surprise billing dispute resolutions reported by its peer UnitedHealth. Cigna’s employer-sponsored plans reaped higher profits than expected in the second quarter after hiking premiums, spurring the company to raise its earnings outlook for 2026. Cigna results released Thursday are a relief for investors worried about broader pressures in the employer-sponsored market, which covers the majority of U.S. adults and has been a buoy for insurers slammed with higher spending in government programs in recent years. Market watchers have been concerned that margins for employer-sponsored plans could be unreliable, as Americans, even the younger and healthier population covered by their jobs, get sicker - and as the federal process meant to resolve out-of-network bills between payers and providers appears to be inflating spending. Two weeks ago, UnitedHealth blamed that independent dispute resolution process, or IDR, for unexpectedly high costs in its employer-sponsored plans in the second quarter. Insurers have been increasingly vocal about their discontent with IDR, which was set up by the No Surprises Act to prevent consumers from being hit with surprise medical bills. Instead of incentivitizing providers to go in-network with insurers, No Surprises has created a burgeoning...
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Cigna posted net income of $1.7 billion in the second quarter, up 8% year over year, on revenue of $71.7 billion, up 7% year over year.
