U.S. health insurer Cigna Corp . (NYSE:CI) is reportedly considering selling its Medicare Advantage business in a move that would reverse its prior expansion into the sector.
A report from Reuters on Monday said Cigna is working with an investment bank to assess the options for its Medicare Advantage business, which provides extra benefits to those covered by federal health insurance.
The publication, citing sources, states the business could fetch several billions of dollars in a potential divestment.
Cigna made its move into the Medicare Advantage business in 2011 with a $3.8 billion acquisition of HealthSpring. However, if the company were to sell its Medicare Advantage business, it would be taking a step away at the same time as the U.S. government tightens its purse strings in reimbursing health insurers for their services.
Reuters warned that the talks with interested parties, including other companies and private equity firms, are at an early stage, and Cigna could still decide to keep the business.