BREAKING: CMS lifts Medicare Advantage sanctions on Cigna

The CMS has lifted sanctions it levied on Cigna Corp. in January 2016 after finding major problems with the health insurer’s Medicare Advantage plans, Cigna said Friday.

Bloomfield, Conn.-based Cigna may immediately resume marketing its Medicare Advantage and Part D plans, and begin enrolling members with effective dates beginning July 1, according to a Securities and Exchange Commission filing.

Cigna has spent the last year and a half trying to resolve issues with its Medicare Advantage plans. The federal sanctions barred the company from marketing and selling its Medicare Advantage policies to new beneficiaries.

The CMS said Cigna plans “posed serious threats to the health and safety of Medicare beneficiaries.” For example, Cigna inappropriately denied medical care and prescription drugs to its members.

Cigna was also hit with lower Medicare Advantage star ratings last October following a CMS audit. Cigna had only 20% of its members in plans rated four stars or higher.

For the three months ended March 31, 2017, Medicare enrollment and consolidated revenues were materially impacted due to our inability to participate in 2017 annual enrollment, and management expects that trend to continue for the remainder of 2017.

In the SEC filing, Cigna said it expects about 60% of its Medicare Advantage customers will be in a plan with four stars or more for 2018.

Medicare’s annual enrollment runs from Oct. 15 through Dec. 7.