Cigna’s Strategic Move: Transferring Medicare Supplement Line of Business to MCLIC for Better Coverage and Support

Is Medco A Cigna?

There has been some confusion about the relationship between Medco Containment Life Insurance Company (MCLIC) and The Cigna Group. To clarify, MCLIC is a wholly owned subsidiary of Cigna, and it exclusively serves Medicare beneficiaries. 

Cigna Health and Life Insurance Company (CHLIC) used to be the main insurer of Cigna’s Medicare supplement insurance policies. However, as part of a strategic initiative to better serve Medicare beneficiaries, CHLIC is transferring its Medicare Supplement line of business to MCLIC. 

This transfer will allow Cigna to focus on its core strengths, while MCLIC will be able to leverage its expertise in serving Medicare beneficiaries to provide better coverage and support.

MCLIC, also known as Medco Health Solutions, Inc. or MHS, has been a leader in mail-order pharmaceutical sales in the United States since its founding in 2003. They specialize in providing life and health insurance services to individuals and families in the event of death or critical illness. 

What MEDCO Offers

This company provides a Medicare Supplement insurance plan, also known as a Medigap Plan, that works alongside Medicare Parts A and B to assist you in managing your medical expenses. Medicare Supplement insurance covers certain eligible medical expenses that Medicare does not cover. Original Medicare does not provide an out-of-pocket-max, making the supplement a crucial addition to your Medicare. 

If you want to learn more about the various Medicare Supplemental Insurance Plans that Medco offers, just click here. You won’t regret taking the time to explore your options.

Understanding the Consent Periods for Cigna Policyholders

If you are currently a policyholder with CHLIC, you may have received an offer to transfer your policy to MCLIC. This transfer will ensure that your coverage continues seamlessly, and you receive the same level of service and support that you have come to expect from Cigna

If you’re a policyholder with Cigna, you may have received a communication about a transition from CHLIC to MCLIC. This transition involves moving your policy from one company to another, and as a policyholder, you have a certain period to consent to or reject the transition. It’s important to understand the consent periods for your state, as they vary depending on where you live. 

The following is a breakdown of the consent periods for Cigna policyholders by State:

CO, KS, ME, NE, NC, RI: 

• Policyholders have 25 months to consent to or reject the transition. Cigna is required to send a final notice 24 months after the initial communication. No response after 25 months is considered deemed consent.

AL, AR, AZ, CT, DE, FL, IA, ID, IL, IN, KY, LA, MD, MS, MT, ND, NH, NJ, NM, NV, OH, OK, PA, SC, SD, TN, TX, UT, WV, WY: 

• Policyholders have 90 days to consent to or reject the transition. If no response is received after 60 days, Cigna will issue a second notice. No response at 90 days is considered deemed consent. 

GA: 

• Policyholders have 90 days to consent or reject the transition. If no response is received after 60 days, Cigna must issue a second notice. No response at 90 days is considered deemed consent. 

MO: 

• Policyholders have 30 months to consent to or reject. Cigna is required to send a second notice 12 months after the initial communication, and a final notice at the 24-month mark. No response after 30 months is considered deemed consent. 

OR: 

• Policyholders have 13 months to consent to or reject the transition. Cigna is required to send a final notice 12 months after the initial communication. No response after 13 months (30 days after final notice) is considered deemed consent. 

VT: 

• Policyholders have 14 months to consent to or reject transition. Cigna is required to send a final notice 12 months after the initial communication. No response after 14 months (60 days after final notice) is considered deemed consent. 

CA, MI, MN, WA, WI: 

• Policyholders must provide affirmative consent to move their policy from CHLIC to MCLIC. Cigna will send additional notices at reasonable intervals to remind policyholders who haven’t replied to do so. 

VA: 

• Consent period TBD 

It’s important to note that if you don’t respond within the specified consent period, your lack of response will be considered deemed consent. This means that your policy will be automatically moved to MCLIC without further action from you.

Medco FAQs – Frequently Asked Questions