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Cigna Exits ACA Exchanges Despite Dramatic Profit Growth in Q1

Cigna has announced its exit from the Affordable Care Act (ACA) exchanges by the end of 2026, a move that comes despite a notable 25% increase in profits for the first quarter. The company is also exploring a sale of its claims review subsidiary, EviCore, to refocus on core business areas.

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Sier John Lewis

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Cigna Exits ACA Exchanges Despite Dramatic Profit Growth in Q1

On April 30, 2026, Cigna revealed its decision to exit the Affordable Care Act (ACA) exchanges at the end of the year during a call discussing its first quarter earnings. This strategic withdrawal will impact approximately 369,000 members across 11 states, leaving them to seek new insurance options amid ongoing turmoil in the ACA marketplace.

Cigna's Chief Operating Officer, Brian Evanko, who is set to take over as CEO in July, stated the decision was not made lightly. He reassured existing members that their benefits and networks would remain intact during the transition. Evanko explained that the ACA segment has become increasingly unsustainable, citing challenges such as rising medical utilization and diminishing enrollment, which has dropped from 446,000 members in the previous year.

Despite this exit, Cigna reported a profit of $1.65 billion for Q1 2026, marking a 25% increase from $1.32 billion in Q1 2025. Total revenues reached $68.5 billion, up 5% year over year, primarily fueled by growth in their Evernorth Health Services unit, which includes key pharmacy benefit management services.

The firm is also exploring strategic options regarding EviCore, its subsidiary that manages medical claims review and prior authorizations, in light of public scrutiny over care delays. Evanko noted that both the exit from the ACA and the reevaluation of EviCore were intentional moves aimed at sharpening Cigna's focus on its core growth platforms, including specialty services and employer-sponsored health plans.

The decision to exit the ACA market reflects Cigna's ongoing strategy of divesting from segments it no longer considers central to its growth. The expiration of enhanced premium subsidies and escalating costs in the ACA marketplace have compounded these challenges, pushing Cigna towards a more streamlined focus on profitable business areas.

As they navigate this transition, Cigna remains committed to supporting its existing members through the change, ensuring that they are informed and assisted as they move to new coverage in 2027. The company emphasizes that this restructuring is part of a broader effort to position itself for enhanced growth and sustainability in an evolving healthcare landscape.

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