CI - Earnings call transcript Q4 2021

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Operator

Ladies and gentlemen, thank you for standing by for Cigna's Fourth Quarter 2021 Results Review. At this time, all callers are in a listen-only mode.

We will conduct a question-and-answer session later during the conference and review procedures on how to enter the queue to ask questions at that time. [Operator Instructions] As a reminder, ladies and gentlemen, in this conference, including the question-and-answer session, is being recorded. We'll begin by turning the conference over to Mr. Giacobbe. Ralph Mr. ahead, go Please Giacobbe.

Ralph Giacobbe

are thanks. Good today's of you joining outlook this David and Relations. XXXX as Chief topics, Chairman Executive Cigna's Officer; morning, I'm Ralph everyone, and morning line Fourth including call. Chief the President me today, quarter In thank Cordani, XXXX. Giacobbe, Cigna's With and for on Great, David Senior financial cover well will for Investor and our Officer. Evanko, Brian financial a year results Cigna's our as Brian remarks full Financial and number of Vice

on our in materially cautionary most results in with differ and actual could from reconciliation current performance. in principles measures, measures earnings release, contained labeled uncertainties adjusted of of is and which These results, from GAAP share Relations the income some statements are these SEC. cause noted filed accepted most remarks States, future today's per United basis shareholders generally in which as earnings to revenues, adjusted describing operations measures, reports directly principal including Cigna and operations release same statements in Investor measures our note determined description the net adjusted statements, to is revenues, forward-looking in adjusted and today's we A risks the As will the financial of our our comparable respectively, for outlook to known the earnings from term total financial release, are expectations. We and use our otherwise that XXXX financial accounting as our earnings In in making uses performance. contained uncertainties and recent is the GAAP. of and with today, these income certain the posted A of not be when regarding cigna.com. risks our subject income section accordance

few to items cover over results David, pertaining to I call financial a and disclosures. will our the turning Before

divestiture reported replaces the businesses Operations. and will now Corporate our XX, international disclosed be Operations, were changes fourth filing our our organizational reporting previously January with segment made release benefits groups: we and and Other which structure announced to in segment life as U.S. International Health and is seven Form Evernorth, changes supplement. call within financial on XXXX. Operations divested This the quarter, align to included pending transaction Asia the businesses result business as government Other will segment and Effective in Healthcare our in X-K fourth supplemental Cigna's earnings close Pacific will company's accident called in in Cigna be the U.S. of the the join the new Cigna's segment. Medical be These Cigna for through be will prior of that First, The with and quarterly three Healthcare. U.S. following Other offerings markets. by a Cigna of quarter the The International a of and reported pending Corporate in investor effective commercial results retained

shared increased operational after-tax charge leverage further regarding plan the company's In automation share million item and recorded growth of the Second, structure we of our ongoing results. use strategic to to services. related to an quarter, to fourth a $XXX through $X.XX per or drive enhancements organizational and special efficiency

share of transaction-related $X.XX special million $XX integration also per for costs. or an recorded item charge We after-tax and

adjusted our results. income in today's are revenues As operations from excluded financial and of items from described discussion special in release, earnings adjusted

outlook, year includes Additionally, on will accident anticipated Also, dividends. businesses divestitures share we not and may that full of other repurchases a please assume life XXXX outlook prospective full combinations will second of Cigna's impact but in or make the our close year assumes from that that potential supplemental so and business the when basis impact that including quarter does of our after comments benefits any note we occur International future pending performance, XXXX financial the XXXX do regarding XXXX, divestiture today.

Day our weeks. I our announce and would over will intention growth to Finally, to value story. the to I details host like where an that, will more in June in David. to call forward look creation the We Investor strategic long-term turn we discuss coming sharing With

David Cordani

today. call Ralph. and you Thanks, joining everyone, Good for morning, thank our

global stakeholders. As challenges, addressing changing the customers of all with we to patients continue remained our and the and balancing step Throughout of pressures and treatment our new protocols landscape face a have variants, these we testing and clients, into rapidly on evolving economy. COVID on XXXX, changing focused needs

organization share our dividends get $X XXXX second Brian will we that, result, of about a share repurchases. ahead. for growth in financial to to grow and world and our full of year delivered for provide questions. billion, long-term deliver started. those our continue your and returned value I'll see consecutive our year the XXXX let's outlook. XX,XXX-plus XX% serve and grew and we'll to And we full and target. differentiated year in growth billion a opportunities XXXX, continue shareholders Then Today, results colleagues We $XXX over share year a In we $XX.XX, adjusted we XXXX sustained around earnings performance additional With the growth our our take adjusted As to above revenues per our also to around details perspective the businesses.

Additionally, capabilities we ensure in we growth continue for beyond. positioned to our in and sustained to are invest XXXX

includes U.S. intelligence fueled be Cigna and business, high-performing which Healthcare, Government of portfolio our pharmacy, U.S. services and will is platforms: our services; Our two growth commercial, care, Health International including to and Evernorth, businesses. health benefits by and our continue

capabilities multiple each Cigna and to and Evernorth groups. other breadth their through the Our Healthcare ability of serve platforms buyer complement the

with build services. or new solution on pharmacy medical typically those then and we lead innovating Here, by either delivering and relationships a we

to a portfolio. high-performing approach, diverse, to sustained this with portfolio expand of record continued that a and track proven a have solutions We innovation commitment

so include this in valuable as clients; area positioned our pressure new partnerships. been growth portfolio. a another in a Relative one are dynamic for broadening and temporary for environment. are health in extremely in we We that business deeper further have portfolio, services discuss core which as compensate accelerated to detail virtual our dermatology pharmacy our within generate can Additionally, see and it reach XXXX health through very of We corporate to and partners and Evernorth's care health revenues through just a health I'll system recognized as as well grew value XX% services, governmental adjusted healthcare in Evernorth. clients, XXXX delivery the results in was increasingly agencies strong for our plans, year in performance, capabilities, MDLIVE we our our behavioral business, services; specialty in our which including in which more outstanding pharmacy continues to our urgent expanded moment, by

our and For leveraging had U.S. the strength of Health Cigna U.S. Government Commercial, sustained growth, businesses. International we Healthcare,

the we The and we impact treatment previously special within year. elevated throughout our higher period for experienced elevated trend in As continued stop-loss claims costs the commercial claims COVID the and medical from of elevated costs. discussed, our testing also vaccines. These businesses business. We insured of continued higher had included costs enrollment individual customers

XXXX. XX% a for year As ratio Healthcare medical result, Cigna was our full care for

margin for discuss in continue we as and to XXXX Brian prioritize for As in we expansion detail, further took pricing impact, targeted affordability will XXXX. XXXX actions earlier

breadth billion our nature our and enabled and and earlier, $X shareholders. return highlighted complementary I As of us the capital to portfolio EPS revenue our exceed outlook to over of

of to attractive on sustained growth We performance. are reshaping Looking to pharmacological between opportunities sites continue opportunities to respond on additional and that and and healthcare. of forward fundamentally the third, achieve to the health; growth Evernorth trend capitalize of are trend, forces toward lead by to how capabilities physical They care. XXXX, we Evernorth the emerging innovation, growing the we increased way to pharmacological the future capitalize alternative start three the drive expect innovation. I'll first leveraging will mental to highlighting see believe link by recognition

coming innovative expire, pharmaceuticals, to promising and opening patents significant and new and in drugs predictable. therapies XXXX, that growth for biologic ways potentially have gene in accessible, for door And billion. Evernorth example, on decrease will estimated most life-changing affordable one we're for and affordability. to patients are pressures biosimilar These the of intensifying by therapies medical the XX the increasing market provide opportunity the spending This for By seeing vaccines. areas competition opportunity with currently also an clients an represent increased $XXX in drugs most dramatic bring the and healthcare innovation specialty New advances customers, in good the life-saving years. creates

Importantly, XXXX. this already will in unfolding and accelerate trend XXXX in is further

by clients savings pharmacy our which those drives only also for positioned to our combining fastest-growing large one specific already conditions. highlight benefit that lead X/X of capabilities today our health number fully a the coordinating differentiated of are is patients capture Accredo intend pharmacy customers, a and service We to our for the and parts of and capability, provides care portfolio. of include Evernorth Accredo specialty and portion revenue, of of I'd specialty that

just biologics illustrates capabilities way incentives draws delivering priority included customers. and for leverage as integrated will Healthcare in for Healthcare well to capabilities. rapidly launched an Evernorth's well one focus improved and medical leverage that biosimilars clients care also supply drive continue access program and for as for chain will demand significant health This we Cigna drugs and we affordability Last as benefit from also customers. continue models. to grow Scripts, Express Additionally, leveraging clinical expertise Cigna innovative its Managing affordability, upon services leveraging which as that improve expertise service a changing business. a network, the the year, to greater in mental broad more specialty to and value our access clients is to Evernorth the

our for care expanding We important MDLIVE how is as example, as well well patients services as virtual our know by Evernorth expand behavioral both platform it is leveraging continuing For clients. to as care our network.

sustained reinforces research that are receive total diagnosed Our people, costs conditions behavioral who decrease treatment. coordinated, Evernorth healthcare with when

and to each we and in on our market continue Cigna customer drive affordability we our executing XXXX, earnings growth in actions as For of commercial throughout pricing U.S. Healthcare expect XXXX. segments grow

Additionally, will our partner leverage Evernorth continue to and Healthcare Cigna innovations.

For with and affordable most medical to example, performing digital the connect experiences customers help care. highest continuing our we're expand to

information environment improved to previously, approach, for and business, are XXXX. recent their more conditions diagnosed competitive patients Our as outcomes in guide government choices and musculoskeletal our we In support a U.S. personalized actionable with and into we've healthcare provide developed operating stepping affordability. and highly orthopedic noted we

aided For U.S. Cigna, broad business by of our portfolio, for discipline government for we've prioritized pricing the strength XXXX.

will membership. Medicare For with flat year start Advantage, we the

entering by extended position confident we our Looking growth as to Star's are addressable high, enrollment metrics satisfaction we noted new customer due Plan in ratings & steadily customers the In accelerate to our strong, geographies. are forward expanded previously, meaningfully Family business, in our as XXXX, market part period. and our very our further, to grew XXXX are special Individual

in continue a to this decline surge product continue And long-term positioning adjust expect enter driven that in an customers We we in that XXXX. saw do to XXXX, part and new to for in markets. growth, by price We the enrollment attractive support opportunity. we special will view as our

For counties. new XXXX, we entered three new states XX and

example, services well and to have developing mobile services. for for we'll markets, an sharpening domestic as into our our Health, reach we International these In health X.X With additional go additional globally focus, ability health million the and deeper are the customers. as we continue

such analytics-driven partnerships joint in with nib the innovative key an we our Group service do Health, establishing Australia. Honeysuckle One this ways of venture as with health the will company is

quarterly Now $XX.XX XXXX XX% least at attractive by our reinforces of year whole, strength the dividend and growth our the our growth taken another outlook EPS as and increase be company. our will of of of businesses. a sustained for

reach I before further want markets our is I to over our addressable performance a wrap aspect time. our reinforce positioning key in Now up, sustained strategically of to expand

Here, we We targeted growth and organic to focus proven will strengthen inorganic further see continued leverage platforms. here. partnerships three our opportunities of areas

expanding seek ability Evernorth by service in we to markets additional capabilities. and enhanced government, current is opportunities our further and win our in these First, will growth U.S.

further Life discipline will portfolio. our health for home portfolio. focus divest supplemental example, our our Second, Care business our International behavioral services. capabilities, our the Evernorth on includes, in third, Health, in markets virtual, expand our benefits decision reinforces and And Evernorth and to portion of accident we This several service including to

up. wrap to Now

turn for in year position us returned Looking over in performed Brian. the a EPS repurchase. long-term of sustained delivered continue capital in that, dynamic and dividends call will of We environment. back of and XXXX business, at be growth another growth. XXXX, billion business we With share our across over and I'll our shareholders $XX.XX to our adjusted $X will innovation to to invest to

Brian Evanko

sale David, review outlook aspects billion results, quarter financial full to revenue of highlights consolidated of growth good or and provide growth key XXXX. XXXX Thanks, fourth for when morning, everyone. Cigna's adjusted Today, XX% include Key to the the X% Disability elevated and Life I'll our $XX.XX. XXXX for and despite I'll We results the Group Adjusted year $XXX driven earnings of in for of these ratio of XX% growth of $X earnings an share adjusted claims. medical after-tax billion adjusting business. by COVID-XX-related and per quarter, partly care delivered

EPS particularly slightly and reflecting strong in performance expectations, our were breadth Our than results portfolio, enterprise with the better and our resilience Evernorth. revenue of

in our earnings results growth retail, grew quarter also care delivered digital the strong to grew ongoing the our the investments specialty we were XXXX efforts in our above continued $X.X strategic adjusted with such improve achieving to strong Evernorth affordability year, to including Evernorth. pharmacy, driven earnings including relationships. platform Accredo long-term strong billion, revenues value Evernorth's organic virtual driving pretax while Evernorth by quarter billion. $XX.X as customers, growth technology, clients In pharmacy Regarding volumes and segments, targets. its focusing of growth level along on strong specialty a and deepening for quarter, and Overall, increase adjusted portfolio, to and support our revenue to growth, capabilities. and of while on first the XX% ongoing I'll of existing Fourth comment

reminder, ratio the $XX.X adjusted prior International were million and includes our a retained business. billion, adjusted Medical quarter as which, fourth was now earnings care U.S. Overall, Healthcare, plus Cigna to segment revenues Turning XX%. Health were the $XXX medical pretax

attributable costs, points policies the with we triggered non-COVID quarter, including large quarter cumulative fourth COVID, the vaccine higher three medical higher-than-expected the year. by fourth in costs specifically in treatment elevated costs, primary and lower throughout impact and were testing, related the During attachment stop-loss areas: to are experienced part claims, COVID to dynamics driven higher costs of by particularly that

costs better-than-expected medical on Continued claim elevated and in period and mid-XXXX our who insured investment specialty costs in ratio The contributions, neither enrollment are income our medical in the were book. care of pressure individual special fee-based were higher metric. partly commercial by business, net customers the added which particularly reflected offset

medical corresponding XX%. costs step and claim to book persist commercial affordability and care We XXXX, year informed run unfavorable assumptions. year expect sharpened The with pricing our full in and the finished For we we XXXX XXXX, into full now throughout will medical few costs ratio XXXX year actions XXXX fourth previously of expected enrollment in relative we and level incremental we've cost consistent quarter with medical in fourth in costs XXXX. business as future to targeted medical above previous take XXXX retention outlook elaborate than which XXXX, stop-loss, we taken the a this higher baseline full our renews pressure appropriate to now as business year. XXXX, in our In quarter action assume of the Commercial on specific Helping will as This we in these a I'll at moments. is business experienced pricing the just pressures, saw expectations. fee-based our our that is emerge the U.S. actions, U.S. higher than offset

within and both customers, supported customer Turning an membership government grow ended customers Select customers, Individual was and is for Healthcare the the with and in Markets by delivered and total year. margins XX.X increase commercial, to clients year Health. and driven XXX,XXX Middle full year for a XXXX. million U.S. membership; we growth approximately medical to and of and Overall, during partners U.S. well-positioned challenging expand our Medicare International Advantage within Cigna XXXX

million and The accident fourth earnings supplemental International Corporate $XXX Life adjusted Other pending contributions to Operations. now businesses positive from divestiture. quarter Turning was loss and our benefits includes and held-for-sale

special digital and our item automation, our through to to Overall, to quarter, enable our reflect growth. fourth related have deployment capital on actions reported we improve we accretive our continued this progress after of the and of our during grow XXXX Cigna's results scale These marketplace. in organic million noted, augment commitment and will organizational actions efficiency. $XXX use made to the Ralph to a As tax tools charge us dynamic portfolio and expand to innovation increased better balanced capitalize

turn we coupled growth performance Cigna Healthcare. actions As to drive operating and and expansion and accretive margin continued income with efficiencies EPS Evernorth in XXXX, affordability drive pricing initiatives, growth in focus our attractive deployment, growth. on will This capital will

divestiture accident that divestitures. year. impact consolidated outlook, growth of outlook the close quarter year full company, approximately like will In the of of benefits in at you the from to announced our first revenues for Life businesses supplemental the second we billion, adjusted our XXXX X%, $XXX For total assumes I'd representing least expect International the and previously remind this of excluding

full consistent improving from X.X%, billion expect of in year commentary. adjusted project at prior with least $X.XX or We operational We $XX.XX we of and operations and XX% least consolidated X.X% our share, And segments. outlook our our expense for continued to further the range our at to per be consolidated the income XXXX tax for clients rate ratio expect upon XX.X%. customers. efficiency to our ensuring EPS an range discuss now solutions I'll a adjusted in affordable

billion. XXXX while growth income For targeted specialty strong solutions Evernorth, earnings investments we market. range, innovative to to increase new about This adjusted growth order expect in represents reflecting drive our over within to of X% all long-term approximately Accredo we continue of in full $X.X year XXXX, growth pharmacy, the

reflects organic expand to in earnings disciplined our growth value adjusted execution of proposition approximately in and pricing focused driven strength XXXX we order by customer For expect margin. This year $X.X outlook our and business, Cigna of Healthcare, the full billion.

Some Healthcare by we for organic the book, majority our customer U.S. key growth National, medical outlook total Select vast assumptions coming driven XXXX in least Within Commercial and following: customers at segments. XXX,XXX our include expect increase commercial reflected Middle XXXX earnings U.S. is the with Cigna of in an customers, growth fee-based regarding customers. Market Market from

David We our XXXX, expect backdrop. decrease And relatively customers. competitive to Advantage expect to flat compared we the as in a customers individual reflecting Medicare be shared,

of XXXX the care the to expect be in range XX.X%. We to medical ratio XX%

above assumes As baseline I be XXXX. noted this will costs total in outlook earlier, medical

managing opportunities guiding actively are effective as to efficient including of a such we identifying of customers more Importantly, and costs actions, overall affordability medical with range sites care.

to focused for incorporating subsidiary an to of replacements patient action which commercial are in example, satisfaction. we has fewer improvements These For than of encourage can of down book substantially non-hospital an on contributed occurring cost we where hospital and our results over in from customers XX% while increasing eviCore business, XXXX. within all knee existing review XX% hip reduce our seeing our now of This inpatient setting, site settings, care the processes. use

preventive our to customer costs medical also in and subsidiary use growing our XXXX, to actions, are the moderate meaningful MDLIVE to care care, the We access continuing of patients term. pricing expect behavioral disciplined to over and overall through to and margins promote base. expand affordability we targeted these medical Through support our while provide services initiatives virtual longer

and capital to outlook. management position moving Now our

billion and strategic expect to XXXX, cash we operations. on growth of flow businesses long-term from reinvestment and support as the $X.X We strong capital, year we innovation. In with to increase cash even our finished flows drive continue to returns

for in now we share XXXX. returned capital billion over a outlook significant And repurchase shareholders via Additionally, our increase from XXXX. dividends $X framing to and XXXX,

our cash reflecting operations, with We XXXX, $X value capital more line creating and positions efficiency well-performing continue in expect from our us capital billion to of at the than well strong business. through priorities. This from flow up billion accretive $X.XX of strategy deployment least

to expect expenditures, to focused deploy to be an XXXX our The We technology growth. drive will capital approximately on investments CapEx from increase $X.XX billion future levels. heavily

from reflecting accident primarily on billion increase a quarterly our and dividend meaningful use basis. XX% deploy approximately proceeds shareholder of per to $X.X to And businesses, to we of the divestiture per supplemental share our the for expect $X.XX a dividends, benefits repurchase. Life expect International share We share,

full of $XXX assumes year X, to in Year-to-date, be average XXXX, as guidance for X.X XXX weighted Our shares. shares XXXX million. to February million million shares XXX repurchased range million we the have of

orientation attractive remains Our sheet balance benefiting outlook on strong, margins strategic from highly drives capital. and flexibility, that cash and flow service-based strong returns our efficient

So recap. now to

Our reflect contributions Evernorth. full strong growth led year results consolidated from platforms, XXXX focused by our

two Our Cigna largest XXXX outlook and reflects Healthcare, segments, deployment. with along meaningful contributions from each our Evernorth capital accretive of

confident $XX.XX full EPS earnings ability in our are consistent adjusted commentary. with our our prior per at share, year of to We least XXXX deliver

And Finally, the the our over forward to for as Ralph more upcoming noted, you we'll in portion turn we operator at Day in are June. detail call. with it looking Q&A Investor that, to speaking with the of

Operator

comes [Operator Instructions] Scott Stephens. first question Mr. Our with Fidel from

your You may ask question.

Scott Fidel

Hi, Wanted also, sequencing sort over interested seasonality XXXX a the and here Thanks. thanks. quarter, of morning. to an the Omicron the ask both the the relative of to of business? XXXX seasonality, the talked that as and thinking you're of first obviously you're about course in of the stop-loss that of just about fact on particular, having and book typical planning impact MLR for as just how the result reprice thinking historical in about still the in MLR likely Good that? thinking maybe you to your of course some throughout year year, given in about, the adjusted business commercial Then EPS

Brian Evanko

Brian. it's Scott,

start with cadence to the I'll component the seasonality well as it as relates as So the EPS MCR.

what reasonable to will we pattern quarterly EPS point starting EPS, we a as the us. expect relative XXXX the emerge think about that actually XXXX of for is quarterly purposes For

which of than in again EPS what to its to terms way in a actually of bit XXXX January, to reinforces resemblance less year. impact a through expect of first et half to what use on based there's of the that And bit relative little framework the seeing is to our far seasonality. the quite we're in a terms working cetera, in book, expect would XXXX, half we specifically, more so reasonable And of Omicron, 'XX January transpire so

full it As indicated, for year to the Healthcare as MCR, of Cigna and business. book is I guidance, XX.X% relates the between XX%

the bit what So here expect would of read again, in below based as on, early the starting in is January, the reasonable year. that, quarter. that can the to for a coupled saw run the pattern We just midpoint last first a you view point little with we quarter

of of EPS think less of XX% the Cigna little again, the first midpoint Healthcare. think overall quarter the MCR So a bit guide the first of year, than for the our half of in being year a bit below full

within it As stop-loss you product. as to business, quarter. to relates year the importantly, of accumulation of need book the think full And a this

had transpiring year, of ends is had course with And business then true-up. this essentially what So are a accumulated period, policy the over we there's quarter slightly occur in and the what the fourth claims more of up the than the anticipating. is points fourth smaller lower heavily pierced of of the attachment we some our year particularly we quarter the had this stop-loss end been of book,

round you $XX can created that medical pressure the million cost as quarter. about fourth so think in And numbers, of of it

course the though, annual year Importantly, the number XXXX. because it reflects over in an that's accumulation the of

quarter number. 'XX So a $XX million full fourth is really in year that the

assumed in that will million pressure XXXX. $XX have We that recur

$X.X that's in have we Healthcare. Cigna embedded that, income be for recover billion not our and So guide we'll assumed to that able

'XX, in the to level able in relative the cases $XX guidance. that's assumption reprice to embedded of million of some dates that we're provide So some effective could extent to later with upside the the the

Operator

you, Mr. Thank Fidel.

with Our question Mr. next Valiquette from Barclays. comes Steven

You your may question. ask

Steven Valiquette

from if of Medicaid to just shift Thanks. of commencing I morning, missed can regarding membership you remind Thanks. I Good members the related everybody. us potential later this, your details outlook year? your redeterminations to members around assumptions but around apologize industry for specifically commercial additional commercial the 'XX, this

Brian Evanko

David Steve, and add it's color. then Brian. I'll some can start

ago through will I enrollment customer Cigna few it's a expected as above in the noted, really have pleased stronger-than-expected relationships. mentioned, expecting least at we're form would of what on with. months customer And and vast growth net which fee-based I of the of retention. XXXX, majority So And actually XXX,XXX customers Healthcare that in we based we're ASO-related as come in

in Medicaid for 'XX the Our growth membership the individual book. commercial from any outlook redeterminations either anticipate book does or not

you in And continue customer upside relative in as it's So as space of the think therefore, redeterminations, participate plan to the Medicaid. to impact our health we of know, don't outlook. today we only

anything terms to of modeled you in have benefit there. Anything over, in voice want David? We not

David Cordani

say, noted in prepared Yes, has growth that the year for each commercial we're XXXX our I my remarks, would as outlook employer I our segment, within of pleased subsegments. full three in

So with full for with pleased start as we're year, the we and the pleased outlook we're outlook the the year.

Steven Valiquette

Okay, great. Thanks.

Operator

Mr. you, Thank Valiquette.

Our next Mr. question Suisse. Credit comes from A.J. with Rice

may your You ask question.

Albert Rice

to the prioritize Medicaid change I just in you've Medicaid acute there everybody. know on interest, said happening in that assessment a your Maybe get an just government the always is channels the opportunities? more One, thought about - update to is comment what question. of the in Maybe about any your And today? maybe Hi, discussion for Yes. organic aspects obviously of in Two or historically? from a on was been continue side. strategy my expanding that. then, side is channels still into advantage market where but is distribution primarily the Medicare lot And MA. of organic about what's growth taking an different a there's your the way standpoint, than distribution you've of done

David Cordani

our able to focus using service the our and expand as Specific individual David. space at and We to we that the on business. stepping plans space we terms service In to proposition the continue continues levers it's as see space portfolio and broadly. our other Medicaid the to expansion, highlight government servicing the Evernorth for Evernorth us. define view we more through fact our MA an To we programs interesting attractive be A.J., MA as when of exchange, growth intermediaries. we're focused look Medicaid the first, individual of as in back, the date, that within heavily part more government its government well pleased as health to end, portfolio, on and

portfolio all noted as to Additionally, our meaningful we to we we going as Medicaid produced some an going remarks, focus continue more to of as MA evolve little XXXX the to Evernorth in no dynamic more dynamic. some growth our to XXXX's was been I attractive. a to life XXXX the we'll - was I to on that service shake to see are individual growth to bit posture from managed creator coming are eye relative be which a margin headlines marketplace different out a our as and that toward expectations environment. heavily And expansion and relative channels standpoint. Hence, XXXX being And expand capabilities, the a MA of little marketplace. value into distribution as we with more that my be growth And MA, a year prepared see well our of doubt evolving. think think bit to channels, an have accelerated reduce Specific internal the

and business For us, to year-over-year Medicare new and see our retention our Advantage, growth for saw position. our XXXX. expected less growth pretty channel Medicare traction product reasonable in We less we given darn our on pricing new for been business has Advantage

Albert Rice

lot. a Thanks great. Okay,

Operator

Mr. you, Rice. Thank

Taylor next Cowen. comes Mr. with Our question from Gary

Your line open. is

question. your ask may You

Gary Taylor

to across question morning. said good is go The then growth. had David, maybe clarification. membership fee-based the segment. One you mostly Brian growth Hi, I the or both said one want question had to just clarifications. And they're I - ASO. thought back and commercial

piece to and risk you've really trying growth what versus strongest would lean would the just for towards I outlook Select, was together I think fee? was had more your So where

David Cordani

Gary, it's David.

part starting frame is helpful. of Your your

Regional National Regional - Each we all think XXXX attractive for about fee-based. it, growth having or National, when segments very being and the attractive about with all and growth Select. think of outlook think that and have we as So about Mid

XX% Select in Second, has to business it less your Select segment point, segment of anywhere segment to very within continues the varies. risk attractive XX% been given stop-loss XX% than we've the year, that segment, and a ASO stop-loss, us. ASO than and varied written between In to growth has amount and risk XX% any for greater the new be

guaranteed segments some segment, the a growth portion stop-loss ASO cost of environment. there, segments business our customer together has the Select of in to So, net and three within strength write But we'll in of being the and XXXX no continue write doubt. the all all going we'll significant fee-based aggregation the to

Gary Taylor

clarification my other Thank you. sense. that I'll makes Okay, ask offline.

David Cordani

thanks. Sure,

Operator

Thank you, Taylor. Mr.

from comes Morgan. Gill Ms. J.P. with question next Our Lisa

ask may your question. You

Lisa Gill

we Thanks XXXX we some or very and on you David, did contracting for we're us know season PBM And then how how up can as is changes about insights any that on, early programs about can first material I you XXXX, of but give your far renewal selling morning. you Good the give XXXX? or pretty that's business us the think renewals, about that as as much. think we update the Evernorth any we on offering? around doing? think you're think as for XXXX, off, see book side as about So PBM

David Cordani

Sure.

that selling multiple is subsegment over performance year start and attractive So backdrop We're years with Evernorth another us. guiding a of 'XX the within put now XXXX let with we've of carried for the towards me and season it. pleased

it would levels. you about, start above to the when equation XXXX be our retention As our at we at with to we expect for you're or about retention retention, think relates this asking growth levels - point, XXXX

So see as outlook. attractive we would an that

XX XXXX our pipeline, about listeners, think we if business for so net growth, health add the services. context coming our we've you into business and over you about would net we essentially And and have that then several adds portfolio years, active see portfolio a last of of plans had new For an through.

and would I performance. positive So attractive sustained continued, say,

Express part of the Importantly, of safeguard we're Scripts and There's off enhance programs of of has proposition. off leverage programs. A the ability working the to of programs and that in side increasingly, Said just is directions cornerstone business clinical to otherwise, do and you your programs, the programs Healthcare I ability base safeguard evolution to Accredo capabilities said comments both of medical has continue programs to would care programs both of to with clinical that the able coordination what the do and clinical to of know some I'd and earlier in an and not engagement Cigna services. innovate leveraging what attention contracts that to in access draw continue your part you evolution is think or offering. back terms PBM a the it's

final expansion it would to your been drive be innovations our working So is does clients organizations. client I doing which And is of growth, in mission-critical. mutually or them. team, our a of programs corporate case that work job note call good them, it, a client health by has the both say term the to PBM beneficial of And as services clients so, using really you by the co-collaborate helping for client,

as from a positive we up, as another well as growth business see XXXX new retention wrapping being standpoint. year, So both

Lisa Gill

Thank Great. you.

Operator

Gill. Thank you, Ms.

Our next Mr. comes question from

Justin Lake Research. with Wolfe

your You may ask question.

Justin Lake

ask, to like gave and them some number that were us in get had - share the for in us the in you commercial stop-loss XXXX, in sounds number, that XXXX, we to could going issues in XXXX you of but in maybe reprice book. you're that not a those it fully. there Is wanted you of you $XX book, rest terms I I hope so know were back fully can repricing you morning. Good ahead get about as repricing of some risk to Thanks. we your million you there or see momentum earnings for could that so of the XXXX books priced? a with some think - the

Brian Evanko

Brian. it's Justin,

the million. the business. general $XX as that part as question So in there book of of specific comments, elevated think the costs. fourth to as we can I some also saw that same the think And medical I commercial was stop-loss quarter, insured all noted your zone pressure And in, of in mentioned really my of about in I you fully

them So quarter. pressure: you three of pressure drivers to insured individual X/X, ratio relative stop-loss, and had fully the of the as the expectations care terms can we think in our the exchange the medical in the the that of about X/X X/X,

of second emerge the pressure the started in we So to going see in that as indicated component comments, forward, his David insured fully quarter of XXXX.

quarter If that cycle our expansion was MCR elevated margin this you on began book recall, expectations. of relative to a our business. And second of

expectation been of the 'XX over expanding we've and course with margins. the So 'XX into of repricing

year. talked in before, transpire to one don't we've all we expect about As that

million when or year. $X.X $XXX doesn't - XXXX. next billion, the at but that's Cigna in Healthcare one year And at to get look profile, margins income the from for target it in us way That up you actually margin our ended about so all we will where this guide year, improve our

further actions. in more for and So have repricing opportunity we 'XX thereafter

business we in fully XXX particular, far the can in you basis sold yields revenue 'XX. into the XXX points as that step in of book cost in business, so of insured range the of has So trends. And excess think to of

we'll as So We'd repriced. that 'XX expect expansion in business the portfolio. of some in more get is margin more

Operator

you, Lake. Thank Mr.

next Mr. Matthew Borsch BMO Markets. from with comes Our question Capital

You may ask your question.

Matthew Borsch

impact one we notice your maybe on partly night? you that, in comment you bit - hoping just could XXXX if what going was just at realize a to And point did to prices related advance little I can enrollment got give comment And sorry, that competitive on the more come rates on Yes, just meaningfully Medicare to you last outlook? Advantage? really were the - those the that

David Cordani

David. Matt, it's

step to in market. competitive to you positioning, And the enrollment to our Advantage three to but level mindful the one we visible benefit we markets, as more price annual ready Medicare course, in our So get margin question we're were see, XXXX, pricing look pricing able specifically, period. will, To for of of volume for at to willingness not, able we're were XXXX. by broadly mindful that. for clearly, We in by you XXXX, we market down most specific Did if when establishing our by to market perfect trade, clicking into were the have environment became Of your point earlier market. as of answer insight? notches

So configuration that with that's cost deep medical gives Star's XXs. you environment in the And an rating with the local into a with attractive scale context. and the

again, as see would able we at was that be at looked point, that mindful what we that volatility. And environment, there were to of So more we transpiring. were

but retention, reasonable pressure bit As little business of sales before, we less I through. noted that came a saw retention, new on

stabilizing our taking we've coming last the XXXX. you through in Net number at eye orientation it's folks rating, point, net X% Score, assessment is environment taking our shaking look for are night. kind aside, your a like our view to what Star's an expanded of ourselves, little XXXX. But posted yields the of positive, through, put our geographies for taking with that about was it our you X% And early, the proposition, current the for and taking specific We yield as Promoter mix, over of headline a when industry. picture, big current Now I disciplined looks current

we're growth in to So forward looking Medicare of opportunity business very for portfolio attractive a the XXXX. Advantage

Matthew Borsch

you. Thank

Operator

Borsch. Thank you, Mr.

Our next Mr. comes from Raskin Research. question Josh Nephron with

your ask may You question.

Josh Raskin

mind? important attractive last Evernorth most us, for this potential inorganic synergies specifically maybe of you for - just what's But new over couple Hi, I the the is to are perhaps M&A this comments and government then you want segment. And Good consider government with scale do joining. And segment. to understanding changed targets the significant market. I'll in potential the asset, the is scale? years? in What the thanks. help there organization blocks that congratulate for up at the government for HealthSpring, lastly, morning. think the point? big answer large-scale How - of the was prepared the is large segment business one think in made really to that rate last kept about I I growth Ralph about that in growth, And hasn't get with back your that

this that of in government time larger So, I'm curious learned are there things think different lessons a if Cigna around segment? at operating terms you the scale or in are

David Cordani

When you about think our inorganic priorities.

and opportunities. disciplined extending our to expanding inorganic growth partnerships then First, focus augment organic identifying then and inorganic priorities and our our

for technology capabilities, I'll and on then equation and a our side and U.S. the focus: support core care to the organization. your our management point our furthering oriented the categories, come international space, digital, government furthering proposition digital in of furthering behavioral markets our categories key toward capabilities delivery the home, more and four the of have health in We second, four

then opportunities subsegments. As going not of government relates multiple at scale, essentially to strategically them we attractive, look priority, course, to priorities, as to it we to as conclude have any to inorganic your or close I'm certainty. we attractive But the they're have we of one a space, financially could that level out we conclude conclude they're of and create inorganic a then to call in point that, there's have

consideration quite take So into we financial in includes within the Regulatorily, environment organizational right recognize that, fluid is context all we the now. your this the the readiness of a question. items From attractiveness, the our conclude and have to attractive ROIC. operations of ability year that be full first create we larger transaction to accretive and in generate a an its will for transaction value, and capture

a an important So would the on note, we us that in a diverse standpoint. the for of approach which part terms portfolio transaction built we've a to final And from way Healthcare within Government that's continued equation in International of Health portfolio, have Commercial growth positioned for growth we Cigna, within demonstrating that Services our is portfolio well levers Cigna capability. then our and from our to multiple

relative but the value - which and, creation, So considering a we're disciplined value strategic mindful creation to the financial value environment. we significant on I creator, of quite disciplined the points regulatory we'll see quite if of course, referenced here be opportunistic

Josh Raskin

you. Thank

Operator

you, Thank Mr. Raskin.

Our from Mr. George next Deutsche Bank. question with comes Hill

question. your ask You may

George Hill

in which morning, for Good you guess And digital. ask Yes. David, I a digital was I last that to pull demand the ex-telemedicine. for mentioned on thread I demand guys. just wanted would comment, for

to I a to think investments Brian had they started before talked you in technology guys digital drive future bought growth. increased ESI, formulary. build about

needle are deployed the you to bottom of is grow line? capital could any about, yet, really the again, initiatives So talk initiatives going moving ex-telemedicine? out So here? talk And any at I future are to guess space guess, I I digital these fill white of where be the would the about and material

David Cordani

calibration good transpired to, reference entities. think made of you the digital a just formulary, it's a we're first, combined So And reinforcement I as point, innovation.

health So using broadening you of I and the although I Two, of with as leverage that creation example beyond, digital beyond appreciate that. virtual do innovation. agree the is massive you value an

to significant see we organization, the into look opportunity we leverage As digital beyond. capabilities

able with examples our as their of a personal amount health and So two to succinct, decisions example just they an consuming I make which significant of share delivering and is at information affordability decisions we've some that over choice made that quality, patient immediately cited personalized we're client. and the mission-critical, time, orthopedics when consumer in And in patient terms one supporting I'll to and And and actionable through I better being learned to made is preference is value specific, that where information exercised. has moment be are highly the then and for the customers of matters care. that better improve to reference back of actionable musculoskeletal patients personalized, that benefit cite there around

So that's an example on equation. the care the of side

of ability further growth revenue services of mission-critical talked about franchise harness leveraging as as equation, our of we within off well continued the shared administrative framework that. side is our A our portfolio. On the digital-first the to

invest bring that it administrative meaningful whether to to the final We that of it's note, creator, both enablement equation. reference the personalized goes it's equation On of customers that the of a care in as appreciate side I most and the value as services calling framework have digital-first side we partners, there. our upon see the or and whether out. to CapEx some you equation, made and philosophy to in as side on the Brian the toward both ability We of and these a dimensions, administrative a service of lies the our to well of continue more physician

Operator

Hill. you, Thank Mr.

Goldwasser Morgan Stanley. Our Ricky comes Ms. from with next question

your may question. You ask

Unidentified Analyst

[indiscernible] is this on Hi, Ricky. for

of implications reinvestment preference a marketing your falling starting or flat, expectations addressed richness of couple And baked and plan the strong given and I drive short the about call. million perhaps times Is the just questions. competitive cost that But on question Just on of benefit Curious, charge second membership quick savings, what's channel? you to is then $XXX notice. guidance? distribution One size into how know to bit it operational cadence, next question the efficiencies. MA 'XX year? related a dynamics it expected a was couple any for the timing, strategic maybe really the of a rate to into

Brian Evanko

first Michael, on pick I'll can and take Brian. question, it's then the David Advantage up Medicare the component.

will efficiency. the come as run can a that about rate time, are by range. with in run the expect $XXX So million quarter you to rate will A that of that was organizational be a morning, portion 'XX. achieved think can $XXX And itself this Over announced XXXX. in amount in that, the taking of million charge And will charge we million, number that $XXX associated we through pretax. you full

give drop of there, out to course, you redeployed line. And Of more automation, talked all of a bottom form about into to just portion and the little that more competitive context A digitization. market. the premiums be that prices the in won't I will

estate There's pandemic a there's into So closed so do with personnel. unnecessary component? optimization pick made floors the and/or essentially restacked, on you work be Advantage the and be permanently of couple that after up a be associated piece significant decision real to this Medicare some that will removing piece also real some of should of We want a sites a will here years as associated David, in here the well. some with estate. component

David Cordani

Medicare XXXX to SG&A the our the is macro a for was I'd back ratio so into. lean rate it in improvement as to a as positive Relative just Sure. embedded notice number attractive environment in improvement for XXXX point, outlook ratio. to SG&A just to us And a to further we that our our Michael, very outlook XXXX view transition for the environment, from point the and fact you Brian's further

your we My relative book more we're we like look notice more of XXX,XXX have yes serve, to would of of and lives. a growth environment as a in to And you of Clearly, answer are sustainable answer we what the fluid or about think business to talking better about this regret it we be question, negatively we that the numbers core I off XXXX XXXX? 'XX, of to was is but would lives view able for do rate I 'XX to to our posture for no. disciplined and believe being decision. remind you, to do better

within able make - the portfolio, those revenue, So of enterprise our that's trade-off X% we're to about decisions. XX%

our opportunity we further off Looking to by expansion opportunity by that opportunity, the more two see the off that see XXXX, the excited so geographic years, being see of last we environment for that. we rate off we're we see when XXXX; of base, opportunity our enabled and and

Operator

you. Thank

with comes question Fischbeck next from Bank Our of Kevin America.

You may ask your question.

Kevin Fischbeck

MA guess Great, and Maybe with margin, below just price well. broaden going thanks. understand want single and of geographies. having bit the you're but in exchanges high probably cases, to you is to you're up I growing digits, grow for follow to flat. rates best as see you're a both And that one down. going expanding growth you're the we're I little average, is The to maybe exchanges when it

have conservative growing. who are companies other about the still So talked pricing

to in those exchanges both MA to and XXXX the about can talking to what be wanted as talk reacceleration that guess I far off and competitive And just are about as about see industry-level I able grow? more for to about little you bit So if your growth you you talking gives think confidence products or when are going be a you next are getting of back rates year? businesses flattish growth, you

David Cordani

two in very environments. markets different market Kevin, appreciate different Two very your questions.

more the prudent that unrelated. to is that posture. individual shareholder a we've marketplace out, of margin point in, at year that view X prove exchange year in as is is environment, lives Two, to not is negative able Specifically or our a fluid adding been marketplace

the has for in played through period Our through enrollment that XXXX. discipline safe played special

a that's marketplace marketplace to yield build in and we've conclusion more negative lives adding capital-intensive more net year sustainable way, the geographies of played proposition. our in X or a focus fluid has in been discipline that in, margin Our at through not is out, in very geographies, But is prudent. year subsegment a be able positive to as a clear, additional

and as macro attractive out our to the I geographies don't resist challenge. of off geographies. new has Looking your existing Advantage, Medicare challenge we is shake growth and see your past, fair. it forward, marketplace in itself will that Relative

of see versus In fact, of the over well relative couple our opportunity meaningfully in we broadened new downside We've years that last MSAs to new as reach as us. as terms counties.

XXs on high. our basis, deep and is is Our performance the Net Promoter within a quite Star Score sustained

attractive in you So HMO can the play individual through proposition we've we've remains marketplace. participated the and PPO that you And participated of over I'd remind recently market. cornerstone only recent market the the only the value very in the in vintage. individual

strike So the was about We've zone we looked XX% expanded said our XX% within than of that addressable addressable market. less market. small, and of to the

time. we'll over grow continue that Now to

and revenue for of So XXXX for yield and we able we're X growth be this both and outcomes. growth of put be look current very with earnings those or attractive a what meaningful, at for in sustainable the businesses a both should those ourselves environment position business we're franchise attractive disciplined not low for attractive to in businesses margin and businesses, these for both of XXXX, chase

Kevin Fischbeck

Thanks. great. Okay,

Operator

Mr. you, Thank Fischbeck.

Rich Mr. with Nathan comes Our next Goldman question from Sachs.

You may ask question. your

Nathan Rich

guidance implies, back basis Brian, improvement. wanted morning. I I about It Hi, XXX XX to for go good think, to the Thanks just the 'XX. of for to question. MCR points

now expected I utilization be above year-over-year. to think up heard bit noted And be the quarter, MMLR will you right is little a I if first on baseline. You

that the year through the over the So could see it MCR? talk you tailwinds you maybe of as relates to balance just

Brian Evanko

different the on So And importantly, is Healthcare the question. Cigna aspects guidance I'll to best do of tackle that basis. my

your the U.S. at for the landed 'XX, go point, at So and basis. not is of MCR. financials full year full the for looking our guidance XX% But to you're as medical it's we comparability, prior to in for XX% that And Healthcare the back XX.X%. Cigna and look historical purposes important you aggregate, year at basis

take 'XX basis improvement it's into 'XX. the that, of points So XXX from of midpoint

you full 'XX absolute level year in as question, in your are XXXX in what mentioned similar in, expecting comments, full be to all of in we medical to relative my 'XX. I year costs the than So saw baseline in mentioned and we

in so assuming some we 'XX. were abatement level And be previously of there would that cost

assuming a are stepping of to ended. longer that. posture year the We We into XXXX take prudent that think light just that's in no

attributable as to changes. that, year-over-year of both a result some revenue outlook, business affordability of our is actions So and MCR improvement our the mix

if our excess trends, yields to U.S. XX little in the basis give you with associated to decompose think in a predominantly revenue you cost more were of XXX there, of So of that commercial. specificity points points, basis about

fully are about asked portfolio. the of So earlier book, well subsegments cost as trends yields seeing we Justin excess that insured as the revenue in as of other

associated about fully come that. adjuster in to incurred our with final in combination And then, took, some pool on demand 'XX, we risk expect from from of Individual the book, the from and XX special the XX care book, book, XXXX. less improvement risk risk Advantage here of pricing points enrollment headwind We specifically in visibility we Medicare we unwind that a basis basis live in described the adjuster medical a Plans in we particular, in good period of earlier, the industry-wide both Family will of actions We've the that level expect got level points our XXXX that coding normalization and terms improvement the normalization. of pent-up is ratio

All of and that the to on points contributes basis individual about plans. improvement XX of family

chunks and are So I the XXX of about. you big think the basis you the guide. would to together midpoint you our put XXXX get Those all to encourage that 'XX from points final

Nathan Rich

helpful. Thanks. That's

Operator

Mr. you, Thank Rich.

next with comes question Baxter Mr. from Fargo. Stephen Our Wells

ask question. your may You

Stephen Baxter

Yes, Thanks. hi.

a working orientation wanted pretty take XXXX. the more and remains up I follow Just question the I what guess Kevin's you're market. and about to to business reprice to Obviously, price-sensitive of this bit short-term exchanges. competitive a little on on

least is of decline us in the when membership So will XXXX, breakeven give you such it's big be business you within this - this at hoping what for then, a guidance we're to could I you're you because results? basically are QX the such sense how swing XXXX XXXX, going was set factor much for report see And a expecting establishing? your

Brian Evanko

I'll David up in here. pick to on if jump wants then Brian. aspects, feel it's free and any Stephen, to Yes, start

we as the few year ago. with period and enrollment lives just you So ended a XXXX calendar the XXX,XXX know, weeks open ended

through terms who some of will dust So there's in settle first follow with to still premium payments.

of et cetera. We the have periods extended grace some on customers,

But bit So to challenge a on we a pinpointing for for in year, the the XX%, of based enrollment open down the the exact first be range up, would number XX%. is the quarter. of full expect how ended period lives just

that think year-end likely net we the can that magnitude 'XX XXX So Intra-year, you there's by down coming sort of year-end by to at some be of ended 'XX. attrition.

will pricing can course year. from over position further year-end number it see expect Based down the some competitive I to in we've the actions took, we'll slide won't of pinpoint our the QX you down seen attrition try but number, the on most the be then geographies. we So and

the get, with were So revenue good basis to on were we yields And several think that the in achieve. gives expect up points just question improvement book this prices of all-in of we would enrollment the the me, of were did when hundred on lives because loss we special and in us we period pleased you the that Nathan following expansion. asked than which confidence renewals that 'XX, able they of MCR the margin business the firmer are certainly

David Cordani

reasonably margins of the at quite book book margins point, that So your for are but our not at quite the target approaching in to but not XXXX. therefore, expanding what for more business,

Operator

Thank Baxter. you, Mr.

Our Dave next from comes question Mr. Jefferies. Windley with

You may ask question. your

David Windley

need taking my Advantage levers enrich Hi, Medicare good morning. ask key back do current profitable might do at profitable in in question. you're talking that closer regard? in the to think particular, to Advantage help key And David, Thanks structure, Medicare that Evernorth make purposes, to what - competitive to might to price for environment? be or Evernorth wanted changes you to cost to and benefits points about you business come what or lower for you the in invoke what how I

David Cordani

has retention with it where business start point let's we a reasonable would as competitive retention of like be environment, points So of less of into we XXXX pretty couple the book to business is new Dave, a again, Big the big below given picture. level, picture, performance just that step sales.

from So increasing But our dynamics off more the today business off bit chassis, little new an we resonates individual those those are and the given of HMO PPO consuming of for are for the the challenging in chassis value side serving marketplace. proposition a that proposition largely equation a individual the value an of services.

the I enhance think always value we proposition.

the alternative your point, ability I case, behavioral And and pharmacy deliver ability some accelerate core and the specialty beneficiary to the further and of enhance collaboration both in opportunities to side proposition. the of So to the to the the of the to One, pharmacy, two the between benefit, areas. subcomponent point overall would leverage toward affordability better care for two, the senior this of convenience. continue

personalization of value both see as from those be both net you care are relationship of value-based can through physician for in side coordinated the of digital, enabled that added alternative or as we about think that services additional opportunities standpoint. care of for as could the that Evernorth. So We those individuals well serve. being as delivered And both affordability home a further extending expansion

David Windley

you. it. Got Thank

Operator

Windley. you, Mr. Thank

Lance Mr. Wilkes from comes question with next Our Bernstein.

question. may You ask your

Lance Wilkes

good Hi, morning. Yes.

question But interested as ask with outlook Just of look the just respect the relationship. been three in of business? Cigna the Therapeutics, in upside growth security to going how interested the and the on and was about margin? interested what's potentially far Prime just here. renewing the products from just on in specialty interested that had was and Obviously, components further of deepening outlook at expanding book as you've how was is end kind business? your then ASO that? should contract? of we what lastly, And penetrating in 'XX and contribution wanted for that's Evernorth sort to in the outlook And for One, 'XX beyond of a I a amount PBM impacting Then generic

David Cordani

Lance, it's David.

lot You into packed a one question.

of touch specialty I'll each. take the Brian the to Prime take question. I'll equation. take us and upon Let on and piece to book, the the I'll the generic upside Cigna ask try specialty

going the situation back, detailed First, Prime orientation a partnering. around here. great specific the reinforcement more with two through just line But a at you Prime, on renewal I'm steps macro is - if of level, our take not to go to

previously, it them. expand continued organization, and in time. proud the growth last And we're plans importantly, within be Lance, the health help able has further XX the We've business Prime of plan health to the our been and plans we over both to several to able health the over relationship co-innovate Our within broaden plans for co-collaborate health referenced and drive Specific to plan health relationship members. to with to I about Prime, grow. portfolio serve we've years. growth had our to Prime net

we So the portfolio of a view it health a growth as had attractive and sustained in it's we've meaningful of businesses. reinforcement and positive our plan

As the portfolio within portfolio. it upside portfolio, to Cigna Evernorth leverage relates between Cigna drive the the to we continue and Healthcare

For Select Evernorth leverage Healthcare that is way. of example, always the we an question, wrap to that when you're up be within the fully within able we Cigna on leverage to PBM the in traditional of penetrated. penetration is for growth to your some strategic relationship our between the capabilities part here, our Specific recently where partner a organizations, deemed way I'll with long-term example segment the the asking were expand the - the UPMC relationship of think two I

segment, an level determined. it's based penetration account relationship. is on the within relationship as client by additional some Market then see Within that having the National account been Accounts, We And penetration Middle varies achieved. of

UPMC Brian, the the like is we'll of, in the have example we're It word the of wouldn't with penetration, cross-value pleased using penetration at it you overall, but PBM word state you're more, piece. and barometer take of can cross-leverage the specialty a use like in big bit I'd collaboration. So our move relationships for leverage of generic rather current movement great a I a a you Cigna as look Healthcare. little specialty

Brian Evanko

important time, kind a it Yes. really are as here. in XXXX in meaningful important to space. be mechanisms driver of and will customers the And both specialty our Overall, in landscape drive just for biosimilars of And our generics a results over of part was And drive competition. that's clients really XXXX. big they picture, and Evernorth affordability specialty the

Evernorth at step contributions in specialty X% will the prepared to It All we won't part for in, be space. I as growth in size specialty. specialty within Specialty parts powered our revenue other multiyear period a comments, least expect growth range, drug will was mentioned Evernorth. a drive targeted our specifically would now over Generics from into long-term well, ultimate 'XX, helpful as will our and revenue that generics. my meaning P&L be the I So, growth, we of contributor of to heavily by growth biosimilars Evernorth. And

and all the we expect being to revenue Specialty Evernorth that. of expect for we with at year, in, component income X% least growth would Generics of a grow coming So X%

Operator

Thank you, Mr. Wilkes.

Ransom Our last next John question comes and Mr. from James. with Raymond

ask may your You question.

John Ransom

assume trend, going normal of a out have in but for but - I Code Thanks could aren't costs little for cost give morning. good mean not Hey, if to anymore, Cigna. just is if would COVID we question more please you breaking 'XX, long, were quantitatively? team a reset The guys a a cost, ZIP that you know what I

Brian Evanko

it's John, Brian.

as headwinds, finding and segregate or in is to you're COVID have and to where with it then determine So the individual difficult to to increasingly COVID COVID and later condition you're an a found not. earlier period right. We enrollment it with we particularly admitted on tough our one COVID-related try hospital and be what situation lives, or the non-COVID that was special more found situations more commentary to the about had might 'XX issue

So we relative found baseline. which all-in difficult, the it about we to medical why costs increasingly talk is

assumption for that earlier, for quarters year the mentioned 'XX, I above we baseline into persistently the carried all As ran XXXX. book, across full we've and four forward

the should the baseline. you think so X% that few the of not And above I percentage a points but baseline, above baseline, as, above say when

tailwind over And subsequent moderation, some mid-single time, then low baseline. digit above if the relative digit will single So think there's that provide 'XX outlook. and/or of to our to

John Ransom

to David. get and mean out like help benefit for committee this is I one I then vendors and our that. just things And strategically, betting

use through on cycle we're they you know what consultants is that and pretty we're know we a we've strikes ASO hearing strikes I going and using been this are. - everybody so is And the and me as what plan, from hot large me these navigators what

on information. sit And talking so another we're yet number card. you quality a the TPA, which the overlay to changed PPO, on about so top needs of can to back become We then there's steer the the like now and of

supplanting some the large navigator. the another function and And like it health just three save the this just top it? can from you're and wonder that's could we yet player. looks points calling able top? ASO just yet reaction layer do so I we why another think IT what on are we're So to do all take So our - out it we're of a management not add trend? money, curious, that the but long-term I'm gosh, about you thought was, plans Or they your just to that Why with is the need reserves that on cost function? do going have everything

David Cordani

another work, Efficient grabbed question there. John, Yes. you

take sustained be if at you the value and slice slice do, continues time we'll decades, specialists try your of as And coordinated. say on that. those back be value a an last size of either I you accelerate of or will look you proposition, I super of value proposition think consolidation as couple if within there of the space go innovation. to that the but important criticality Typically, what And toward question I that results the take to being - where a the and points know the of capabilities over periods of to of or don't is those drive innovation immaterial in capabilities an specialization proposition.

touch we think coordinating So totally But the a multiple on them. think think sustainable. your coworkers them. professionals for want don't to navigator We theme multiple is picture have rather, points you don't strategy us. medical articulate points is the don't coordinating We want of touch

not only be expand could in coordinated time. expand able in you team of programs digital-first would some a much capability for what generations digital-first capabilities, service customers way. and One I portfolio, that we do our capabilities reinforce the for to within on solutions having certain that within philosophy, discussed guy the but have previously, have a that We more clinical quite continue the navigation to marketplace to which certain is and and that our standpoint capabilities a different been

that portfolio strategy, view our as have we and So view on convert within as proof we positive because disintermediate that the we we for not we've of but able us. capabilities for a to that as been multiple part our how that as is our that view of do of marketplace of it period view long not CapEx, opportunity so an part over today, time fragmentation we points sustainable; to opportunity

John Ransom

that question, David, See, hadn't you snuck if wouldn't give I able to in that have answer. been

So I happy you're know with it.

David Cordani

I appreciate John. your effectiveness,

You a have day. great

John Ransom

right. you. Thank All

David Cordani

you. See

Operator

now back Cordani turn to David over remarks. will call closing I for the

David Cordani

I are suggestions I and your thank very importantly, appreciate much. But time John your morning. John, up, couple guidelines. I reinforces of just that to the wrap have do comments. want it And this before We a everyone for operators questions

for a for appreciative greater First, an health more to to than clients. and our committed our challenging in and all appreciation we're the patients XX,XXX to this of affordability, pandemic. continuing We've want say very our am colleagues prolonged Cigna, clients, innovate how simplicity proud continuing of our customers of I deliver of predictability And I our in environment. well-being during gained serve solutions and even more and to importance customers, and to patients our

and Thanks, well have strong positioned confident for Cigna. day. are Cigna and Healthcare Our growth, we're another that great for Evernorth XXXX year sustained be platforms a and will

Operator

this XX Ladies respond days Quarter conference be will Results Fourth Review. will following additional available for to Investor questions call. XXXX Cigna and Cigna's business Relations to shortly. recording this be concludes gentlemen, this A available of

or you participating. There this for the passcode access XXX-XXX-XXXX recorded required may dialing for XXX-XXX-XXXX. replay. Thank You no conference is by

disconnect. We will now

Cigna (CI) 3 Feb 222021 Q4 Earnings call transcript