Health insurer Cigna’s third quarter profits were higher than expected due to more customers enrolling in its offerings and lower costs in its commercial business.
Overall, Cigna’s net income rose to $560 million, or $2.21 per share, in the third quarter ended Sept. 30, from $456 million, or $1.76 per share, at the same time last year. As of Sept. 30, the company’s membership rose about 4 percent to 15.8 million.
Its commercial medical loss ratio, which is the percentage of premiums spent on claims, was 78.6 percent in the third quarter, compared with 79.4 percent during the third quarter last year.
Cigna is one of the only larger health insurers that will continue selling coverage in the Obamacare exchanges next year for the open enrollment period that began Wednesday.
The company is participating in the exchanges in Colorado, Illinois, Missouri, North Carolina, Tennessee and Virginia, but pulled out of selling plans in Maryland. A letter at the time said that losses had increased there year over year.
David Cordani, Cigna’s president and chief executive officer, did not specifically address the exchange market in an investor call but did note the “highly disruptive legislative and regulatory climate.”
Insurers participating in the Obamacare market for 2018 are facing uncertainty in terms of enrollment expectation because the Trump administration ended some insurer funding and has reduced ad and outreach funding to get people enrolled.
