Insurance giant Cigna saw its profits rise nearly 50 percent in the second quarter of the year from 2016 after an increase in enrollment on the individual healthcare market, which includes Obamacare’s exchanges.
Cigna’s earnings report, released Friday, comes just days after Republicans failed to get anywhere in the Senate on a bill to repeal parts of Obamacare, including the mandate requiring people to buy health insurance.
Cigna reported that it earned $750 million in the second quarter, compared to $515 million in the same quarter in 2016.
The individual market includes Obamacare’s exchanges, and people use it to buy health insurance if they don’t have it through work. Cigna had hoped to grow its presence in Obamacare’s exchanges this year but decided against it. It offers Obamacare plans in seven states.
However, Cigna’s enrollment in the individual market has exploded by 82 percent from June 2016 to June 2017. Cigna had 336,000 people on the individual market in June 2017, compared to 185,000 at the same month in 2016, according to the company’s financial statement.
Cigna is the latest insurance giant to post big profits in 2017 despite Obamacare losses. Aetna announced Thursday it would completely withdraw from Obamacare’s exchanges in 2018 since it saw profits soar this year from reducing participation.
