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Supreme Court Shakeup Adds Another Layer of Complexity to Election Year for Healthcare Industry

Julie Utterback, CFA Senior Equity Analyst

Analyst Note

| Julie Utterback, CFA |

With Justice Ruth Bader Ginsburg's death Sept. 18, another layer of complexity has been added to this election year for the healthcare industry. The Supreme Court is scheduled to hear oral arguments on the Affordable Care Act on Nov. 10, a week after the U.S. election. Prior to Ginsburg's death, the court looked likely to uphold the ACA at least along the previous voting lines (5-4), but without her vote, the path to upholding the law just got more complicated, creating the potential for the millions of Americans who gained access to insurance through the ACA to lose that coverage. For now, we are not changing our views on any moats or valuations in the industry, but investors should be aware of the various scenarios that could influence the U.S. healthcare system over the next several weeks. 

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Company Profile

Business Description

Cigna primarily provides pharmacy benefit management and health insurance services. Its PBM services were greatly expanded by its 2018 merger with Express Scripts and are mostly sold to health insurance plans and employers. Its largest PBM contract is the Department of Defense. In health insurance and other benefits, Cigna mostly serves employers through self-funding arrangements, but it also operates in government programs, such as Medicare Advantage. The company operates mostly in the U.S., but its services extend internationally in over 30 countries.

Contact
900 Cottage Grove Road
Bloomfield, CT, 06002
T +1 860 226-6000
Sector Healthcare
Industry Healthcare Plans
Most Recent Earnings Jun 30, 2020
Fiscal Year End Dec 31, 2020
Stock Type Aggressive Growth
Employees 73,700

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