Health insurer Cigna said on Friday that the government health agency had imposed sanctions that would force it to suspend new enrollment in its Medicare Advantage health plans for seniors as well as its standalone Medicare drug plans.
The government imposed the sanctions because of deficiencies in Cigna's appeals and grievances in both Medicare Advantage and the drug program, the company said in a regulatory filing. It also found deficiencies in the administration of its covered drug plans and its compliance program, the company said.
Cigna said the suspension does not affect members currently enrolled in these plans.
Cigna is one of many private health insurers that manage healthcare and drug benefits for older people and disabled people under the government-paid Medicare program. It is overseen by the Centers for Medicare and Medicaid Services, part of the U.S. Department of Health and Human Services.
Cigna plans to be bought by Anthem and its $45 billion deal is currently under review by antitrust regulators.
Cigna said it is working to resolve the matters as quickly as possible.