Bob Herman Jan 20, 2017
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Cigna's $500 million problem

Matt Rourke/AP

Cigna has lost roughly a half billion dollars tied to federal sanctions against its Medicare Advantage plans, according to people familiar with the matter.

The $500 million deficit represents the money Cigna has spent fixing problems with its Medicare Advantage plans, as well as the value of the thousands of members Cigna has lost during Medicare's enrollment period for this year. In 2015, Cigna collected $6.1 billion in Medicare Advantage revenue from the federal government.