Cigna Joins Forces with CVS Health, Launches Cigna Health

Cigna Corporation CI has recently launched Cigna Health WorksSM in partnership with CVS Health Corporation CVS.  The alliance is primarily aimed at aligning Cigna-administered health benefits with CVS Pharmacy and CVS MinuteClinic retail health care services.

 Through this strategic collaboration, Cigna Health WorksSM will provide consumer-friendly services to the people covered under Cigna self-funded employer-sponsored health plans. Both the companies have decided to make the new program available to the U.S-based Cigna-administered employer-sponsored medical plan members through a select market basis.

On the back of its relentless efforts to improve health outcomes, the company has always been an investor favorite. Its shares have gained 25%, substantially outperforming the Zacks categorized Multi Line industry's rally of just 2%. This collaboration is also likely to add more value to the stock.

The main rationale behind the deal is to combine CVS Health's substantial insights on health benefits with Cigna's deep knowledge of retail consumer behavior to better serve the patients.

The alliance assures to provide customer engagement and personalized pharmacy support using Health Tag Messages on the prescription bag, which basically gives the patients guidance on required health actions during critical situations. The instructions, along with other required information are to be provided by the pharmacist or clinician at no additional cost.

The new program also includes contracted discounts at CVS MinuteClinic for certain preventive and acute care. The situations mainly include biometric screenings for blood pressure, cholesterol and blood sugar along with treatments of minor illnesses like bronchitis, ear infections and strep throat.

In addition, the Cigna customers will also have an access to a CVS ExtraCare Health card that would provide an exclusive 20% discount on CVS Health's over-the-counter health products at all the CVS Pharmacy locations nationwide.

Last but not the least, the new  program can easily be combined with Cigna 90 Now, which offers 90-day refills for maintenance prescriptions to help improve patient adherence to their medication regimen, cost savings and satisfaction.

Cigna Health WorksSM brings a drastic shift to traditional health care experience by making the health benefits more effective, affordable and user-friendly. This new model creates value for customers in the most customized manner possible. It offers the opportunity for significant health care cost savings by offering an effective and appropriate alternative to Urgent Care and Emergency Room visits. Cigna Health WorksSM can also help address important health concerns like the lack of a primary care physician or access to a pre-diabetic health screening.

From the perspective of CVS Health, the new alliance with Cigna is part of the growing trend toward consumer-directed care that provides information and cues for CVS customers and patients to help them get the most from their Cigna-administered health benefits.

Zacks Rank and Other Stocks to Consider

Cigna presently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Investors interested in the same space can also consider stocks like Assurant Inc. AIZ and Loews Corp L. Both of the stocks carry a Zacks Rank #2.

Assurant delivered positive surprises in three of the last four quarters with an average beat of 6.82%.

Loews delivered positive surprises in each of the last four quarters with an average beat of 25.77%.

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