Monthly Archives: January 2016

Cigna Banned From Selling New Medicare Advantage Plans

In a January 21, 2016 letter to Cigna Corporation (“Cigna”) the Centers for Medicare & Medicaid Services (“CMS”) announced its determination and intent to impose intermediate sanctions suspending the enrollment of and marketing to new customers of all Cigna Medicare Advantage and Standalone Prescription Drug Plan Contracts.  The sanctions, which became effective at 11:59 p.m. on January 21, 2016, were imposed after a CMS conducted audit of Cigna’s Medicare operations concluded that Cigna “substantially failed to comply with CMS requirements regarding Part C and Part D organization/coverage determinations, appeals and grievances; Part D formulary and benefit administration; access to facilities and records; and compliance program effectiveness.”  In a Securities and Exchange Commission (SEC) filing Cigna indicated that the corporation is “working to resolve these matters as quickly as possible and is cooperating fully with CMS.”