Cigna expects higher inpatient medical activity throughout 2024

The Cigna Group (NYSE:CI), a leading player in the market for commercial health insurance, said Tuesday that the company expects to witness an increase in inpatient medical activity throughout 2024.

Cigna (CI) CFO Brian Evanko made the remarks during a presentation at the Goldman Sachs Annual Global Healthcare Conference.

"We've expected for the full year that we'll continue to see elevated inpatient activity throughout the entire 2024 calendar year," said Evanko, who also heads the company's insurance unit.

"So first quarter was elevated. We're seeing it continue into the second quarter, and that's our expectation for the balance of the year as well," Evanko added.

His remarks coincide with growing concerns among health insurers about rising medical costs.

In May, Centene (CNC) CEO Sarah London cited pressure in the company's Medicaid business, arguing that state-level eligibility reviews that resumed last year have changed the acuity dynamic of its membership base.

UnitedHealth (UNH) CEO Andrew Witty issued similar remarks days ago, noting a delay in obtaining premium Medicaid reimbursement rates that align with medical utilization trends due to the ongoing redetermination process.

Early this year, Humana (HUM) led a selloff among health insurers after the company lowered its outlook twice in January, citing a spike in medical costs in its Medicare Advantage business.