Cigna Agrees To Buy HealthSpring For $3.8 Billion

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NEW YORK, Oct. 24 (UPI) — U.S. insurance company Cigna Corp. said it agreed to buy HealthSpring Inc. of Nashville for $3.8 billion.

HealthSpring’s strength is in the Medicare Advantage program in which Medicare is provided through private firms rather than the government, The Wall Street Journal said.

The firm has 340,000 Medicare Advantage members and 800,000 participants in its stand-alone Medicare prescription drug plan.

Cigna, based in Bloomfield, Conn., said it would raise 20 percent of the funds required to complete the deal through a release of new equity shares.

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