Cigna Corp. (CI) Comments on CMS Star Quality Ratings; Sees no Financial Impact in FY16 - 17
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
Cigna Corp. (NYSE: CI) disclosed the following on Wednesday:
Item 7.01 Regulation FD Disclosure.
On October 12, 2016, the Centers for Medicare & Medicaid Services ("CMS") announced 2017 Medicare Stars Quality Ratings ("Stars") for Medicare Advantage plans. While Stars ratings are based on a number of plan performance measures that are evaluated each year, the projected Stars ratings for plans offered by certain subsidiaries of Cigna Corporation ("Cigna") included certain reductions which are primarily attributable to our previously announced CMS audit.
Under the Stars ratings posted by CMS today, approximately 20% of our Medicare Advantage customers would be in a 4 Stars or greater plan. There is no financial impact in 2016 or 2017 because these ratings apply to plans for the 2018 payment year.
We do not believe that these Stars ratings reflect the quality offerings Cigna HealthSpring provides to beneficiaries. We will work fully with CMS through their process to ensure that they have the information and analysis needed to calculate final Stars ratings that more accurately reflect our performance. Cigna continues to achieve high quality health outcomes, providing significant benefit to our Medicare Advantage customers.
We remain committed to our partnership with CMS and to delivering quality products and services to seniors, while working to mitigate the impact these Stars ratings could have on our offerings in 2018.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Medicinova (MNOV) Updates on FY16 Outlook
- Exact Sciences (EXAS) Beats Q3 EPS by 6c, FY Revenue Guidance Tops Views
- Coca Cola (KO) Tops Q3 EPS by 1c
Create E-mail Alert Related CategoriesCorporate News, Guidance, Hot Corp. News
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!