Cigna Group (CI) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that Cigna Group surfaced in its latest filing.

• FTC filed an administrative complaint against Express Scripts and two other PBMs in September 2024 for allegedly engaging in anticompetitive and unfair rebate practices related to insulin drug pricingSeptember 2024
• In February 2026, we reached a final settlement with the FTC without a monetary penalty, finding of fault or admission of liability, requiring updates to our business practices related to affordability of medications of Express Scripts customersFebruary 2026
• More than 65,000 pharmacies participated in one or more of our networks as of December 31, 2025December 31, 2025
• The 10 largest retail pharmacy chains represent approximately 47% of the total number of stores in our largest network
• Change Healthcare, a service provider for certain pharmacy benefit management services, was the victim of a ransomware attack in February 2024, causing limited disruption of certain services and necessitating security validations for certain systems before reconnectingFebruary 2024
• We are currently subject to litigation claiming that we improperly used AI in the claims evaluation process
• Goodwill and other intangible assets were approximately $73.5 billion as of December 31, 2025, representing 47% of total consolidated assetsDecember 31, 2025
• In the year ended December 31, 2024, we determined our investment in VillageMD was fully impaired and recorded a $2.7 billion lossDecember 31, 2024
• The total indebtedness of The Cigna Group was approximately $31.5 billion as of December 31, 2025December 31, 2025
• In 2025, we responded to a voluntary HIPAA security rule audit from HHS's Office for Civil Rights2025
• Material pending legal actions and other legal and regulatory matters are included in Note 22 to the Consolidated Financial Statements
• We currently have overfunded obligations in our frozen pension plan
• Announced commitment to developing a rebate-free model may alter manufacturer contracting dynamics
• Express Scripts client contracts generally have three-year terms and may be subject to periodic renegotiation of pricing terms based on market factors
• Cigna Healthcare premiums are generally set for a one-year period and priced well in advance of contract commencement or renewal
• Contracts with retail pharmacies are generally nonexclusive and are terminable on relatively short notice by either party
• The Inflation Reduction Act grants CMS the ability to negotiate drug prices for high-cost Medicare Part D and Part B drugs
• We participate in health insurance exchanges through our IFP offerings in certain states, with uncertainties in mix and volume
• Government entities generally have the right to not renew or to cancel their contracts on short notice without cause or if funds are not available
• We may have indemnification obligations related to regulatory audits of our Medicare Advantage and Medicare Part D businesses that were ongoing at the time of the HCSC transaction