Cigna's health services business powers Q2 earnings beat
The company was among the last major health insurers to report quarterly results, in a period marked by high medical costs in government-backed plans. Cigna, however, was able to shield itself from the broader industry trend as it divested its Medicare business to Health Care Service Corp and relies more on pharmacy benefits and fee-based commercial insurance.
The company has intentionally structured its portfolio to suit current conditions, CEO David Cordani said on a post-earnings call. "We have no exposure to Medicaid or Medicare, instead choosing to serve these customers through our Evernorth services portfolio."
Medicaid plans are for low-income people, while Medicare Advantage is for people aged 65 and older or with disabilities.
Revenue from Cigna's Evernorth healthcare services unit, which includes its pharmacy benefit management business, rose 17% to $57.83 billion during the quarter. Pharmacy benefit managers help negotiate drug prices and coverage with manufacturers on behalf of employers and health plan clients.
But the company also said it expects costs to remain elevated throughout the year and into next year, and has priced 2026 accordingly.
It reported a medical care ratio — the percentage of premiums spent on medical care — of 83.2% during the quarter, higher than the 82.3% a year ago. Cigna attributed the rise to higher stop-loss medical costs, which protect employers from large claims.
Shares of the company dropped 6% in morning trading.
Baird analyst Michael Ha said the stock dip may reflect stop-loss concerns, but called the reaction "overdone".
Cigna forecast 2025 medical care ratio to be between 83.2% and 84.2%, with the third-quarter ratio expected to be toward the upper end of that range.
Its second-quarter adjusted per-share profit of $7.20 topped analysts' estimate of $7.15, according to data compiled by LSEG.
The company maintained its annual adjusted profit forecast of at least $29.60 per share, while analysts expect $29.68 per share.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Guardian
an hour ago
- The Guardian
How the Ali Act overhaul is clearing the path for a Saudi-backed takeover of boxing
When Ari Emanuel – the notorious Hollywood powerbroker and CEO of TKO Holdings Group, which owns both the UFC and WWE – made a rare media appearance on the Pat McAfee Show in February 2025, he offered cryptic remarks about the state of boxing. Though typically cagey, Emanuel hinted, 'Who knows what's going to happen with the Ali Act' – a reference to the Muhammad Ali Boxing Reform Act, a federal law designed to protect the rights and welfare of boxers. Since then, rumors have swirled that TKO is quietly working to amend the law to make way for its newly minted boxing venture with Saudi Arabia. Last week, those rumors were confirmed when US representatives Brian Jack, a Republican from Georgia, and Sharice Davids, a Democrat from Kansas, introduced the Muhammad Ali American Boxing Revival Act in Congress. The proposed bill is being touted by the congressional representatives as a much-needed modernization of federal regulations in professional boxing, adding new provisions to the 1996 Professional Boxing Safety Act and introducing 'alternatives' to the sanctioning bodies overseeing the sport. 'I am incredibly proud to introduce the bipartisan Muhammad Ali American Boxing Revival Act, which provides boxers with more opportunities, better pay, and greater safety standards,' Jack said in the press release. 'Professional boxing is the only sport regulated by Congress, and ambiguity in current law – adopted over a quarter-century ago – has stifled investment. Congressional action is needed to revive this once-great American sport, and this bipartisan legislation establishes a framework for innovation to flourish.' The 'stifled investment' that Jack is referencing in his statement is TKO's new boxing venture with Sela, an entertainment subsidiary of Saudi Arabia's Public Investment Fund (PIF), and Turki al-Sheikh, the figure behind Saudi's General Entertainment Authority and a close confidant of Crown Prince Mohammed bin Salman. The new venture, dubbed Zuffa Boxing, will debut on 13 September 2025, with an anticipated super middleweight showdown between Saul 'Canelo' Álvarez and Terence Crawford. An expanded boxing promotion will likely follow in 2026. Backed by the Saudi government's enormous resources, Emanuel's company advocated for the bill in Congress, including provisions to created alternatives to long-established sanctioning bodies like the World Boxing Organization (WBO) and World Boxing Council (WBC). The proposed alternatives in the legislation are known as Unified Boxing Organizations (UBOs), which is what Zuffa Boxing will likely operate as. While framed as a 'framework for innovation', Zuffa Boxing empowers Saudi Arabia to establish a parallel boxing ecosystem where it has sole determination over fighter ranking and championship belts. This paves the way for Saudi to bypass established sanctioning bodies, undermine existing promoters, and ultimately, gut professional boxing. 'This is a concerning bill for professional boxers,' said Erik Magraken, a combat sports regulatory lawyer and founder of 'It guts the key protections from the Ali Act for promoters that choose to use the 'unified boxing organization' model. It allows a promoter to control rank and title … and achieve a stranglehold on the sport.' The bill also sets out a series of compliance requirements for UBOs, including minimum per‑round payments and safety provisions such as mandatory medical examinations and expanded health insurance. While these measures could, in theory, benefit up‑and‑coming boxers, they also create significant barriers to entry for smaller boxing organizations attempting to establish UBOs. Zuffa Boxing, backed by Saudi funding, would be well‑positioned to dominate this space, attract new fighters, and establish a new hierarchy in the sport – one in which TKO effectively determines who holds the world titles. This new model for boxing is based almost entirely on the structure of the UFC, an organization that has long been criticized for its exploitation of fighters in its pursuit of profit. Fitting since UFC CEO Dana White, a longtime friend of US president Donald Trump, is expected to lead the new Zuffa Boxing venture. 'Everybody knows the format – the best fight the best,' White said in interview with The Ring, the boxing magazine owned by Al-Sheikh and, by extension, the Saudi government. 'You work your way up the rankings, and once somebody breaks into the top five [and] there is no question [about] who the best five guys are in each weight class, they fight it out. And once somebody holds that belt, you don't need three letters in front of the belt. Whoever has that belt is the best in the world in that weight class. It's a very simple model.' Despite generating billions in revenue, the UFC pays its athletes a significantly smaller share compared to other major sports leagues. While NFL and NBA players receive close to 50% of league revenues, UFC fighters earn roughly 15% to 18%, with many on the roster making as little as $10,000 to $20,000 per fight – amounts that barely cover training costs, coaching and medical expenses. Efforts to unionize or challenge these inequities have been quashed by the UFC, which has used long-term, exclusive contracts and its market dominance to keep fighters in line. Last year, the UFC agreed to a $375m settlement with several hundred fighters to resolve an antitrust lawsuit. The plaintiffs accused the promotion of stifling economic competition and using its monopoly power to suppress fighter pay. While the UFC denied any wrongdoing, the underlying claims remain central to a separate, ongoing case. When Congress passed the Ali Act in 2000, it was in response to the unfair and anti-competitive practices rampant in pro boxing at the time. The sport was dominated by influential promoters, corrupt sanctioning bodies and coercive contracts. The Ali Act provided federally-backed oversight and enforcement meant to reduce the exploitation of fighters through transparency mandates and financial disclosure requirements. The legislation passed with unanimous bipartisan support and stands as the only example of Congress attempting to directly regulate a professional sport in the United States. While the Muhammad Ali American Boxing Revival Act does not repeal the Ali Act, it does pave the way for new organizations to emerge outside of the purview of current sanctioning bodies, effectively bringing the UFC model to boxing. It is unclear when the bill will reach the House floor, as Congress will be in recess through the entirety of August. Nevertheless, the bill has received support from Ali's widow, Lonnie Ali, who was quoted in the press release as saying that 'Muhammad would be proud to have his name associated with this bill.' Davids, who co-sponsored the bill, was also a former MMA fighter who once tried out as a contestant for The Ultimate Fighter – a reality show that places fighters in a mansion for several weeks as they work their way through a tournament for a 'six-figure UFC contract'. Their involvement in the bill is a masterstroke of lobbying tactics by TKO and Emanuel. 'The Ali Act was created to stop coercive and exploitative practices by promoters. It was designed to make a monopolization of the sport not possible. Independent rank and title are the key reasons why pro boxers can command such great purses compared to MMA athletes,' Magraken said. 'Boxers compete for titles. Promoters compete for boxers. If promoters own and control titles then boxers can be exploited by promoters.' This will be remarkably beneficial to Saudi Arabia and Al-Sheikh, who have invested billions to wrest control of boxing from its traditional masters. Al-Sheikh has bankrolled some of the most high-profile heavyweight fights and broken through negotiation stalemates by offering record-breaking sums of money. His success as a promoter has made him one of the sport's most powerful figures, while fans and media affectionately refer to him as 'His Excellency' – a title that underscores his growing cult of personality. Al-Sheikh's expanding influence has stifled criticism within boxing. Fans are willing to overlook troubling behavior as long as he continues to deliver exciting matchups, while journalists, eager to maintain their critical access, often frame the narrative in his favor. The kingdom also owns its own boxing magazine and deploys a vast network of PR firms and executives to advance its political agenda through sports. It is yet another reminder of Saudi Arabia's broader strategy in sports – a blueprint built on acquiring influence, shaping narratives and establishing self-sustaining ecosystems under its control. Boxing may be the ideal asset to complete that vision. Karim Zidan writes a regular newsletter on the intersection of sports and authoritarian politics.
The Independent
2 hours ago
- The Independent
Columbia Sportswear sues Columbia University claiming merchandise is too similar and causes confusion
Columbia Sportswear is suing Columbia University, accusing the university of copyright infringement and breach of contract. The retailer claims the university's clothing and merchandise are too similar to its own offerings and that those similarities may confuse shoppers. The lawsuit was filed on July 23 in the U.S. District Court for the District of Oregon. Columbia Sportswear has been using the name "Columbia" since 1938. The university and the retailer reportedly signed a deal in 2023 dictating the ways in which the university can use the word "Columbia" on its own apparel and merchandise. The pact stipulated that the university could use the name "Columbia" on merchandise so long as a school logo or mascot, the word "university", or an academic department of the founding year of the school — which dates back to 1754 — were present alongside the word. Columbia Sportswear claims in its lawsuit that the university breached those terms in 2024 when it allegedly began offering merchandise that used the name "Columbia" without any of the school signifiers established in the pact. The retailer also noted in the filing that the university was offering garments with bright blue colors that were "confusingly similar" to the blue used by Columbia Sportswear. 'The likelihood of deception, confusion, and mistake engendered by the university's misappropriation and misuse of the Columbia name is causing irreparable harm to the brand and goodwill symbolized by Columbia Sportswear's registered mark Columbia and the reputation for quality it embodies,' the lawsuit argues. Columbia Sportswear wants to stop all sales of the university's clothing that allegedly violate the 2023 agreement. It further wants a recall of all previously sold items and all the remaining stock to be donated to charity. The retailer is also seeking three times the amount of actual damages determined by a jury if its litigation is successful. $220 million to the Trump administration in order to restore its federal research money that the president cancelled earlier this year. Under the settlement, the college will pay $200 million to the federal government over the next three years.
The Independent
2 hours ago
- The Independent
Rural US high schools are offering more college-level classes, but college can still be a tough sell
As a student in western New York's rural Wyoming County, Briar Townes honed an artistic streak that he hopes to make a living from one day. In high school, he clicked with a college-level drawing and painting class. But despite the college credits he earned, college isn't part of his plan. Since graduating from high school in June, he has been overseeing an art camp at the county's Arts Council. If that doesn't turn into a permanent job, there is work at Creative Food Ingredients, known as the 'cookie factory' for the way it makes the town smell like baking cookies, or at local factories like American Classic Outfitters, which designs and sews athletic uniforms. 'My stress is picking an option, not finding an option,' he said. Even though rural students graduate from high school at higher rates than their peers in cities and suburbs, fewer of them go on to college. Many rural school districts, including the one in Perry that Townes attends, have begun offering college-level courses and working to remove academic and financial obstacles to higher education, with some success. But college doesn't hold the same appeal for students in rural areas where they often would need to travel farther for school, parents have less college experience themselves, and some of the loudest political voices are skeptical of the need for higher education. College enrollment for rural students has remained largely flat in recent years, despite the district-level efforts and stepped-up recruitment by many universities. About 55% of rural U.S. high school students who graduated in 2023 enrolled in college, according to National Clearinghouse Research Center data. That's compared to 64% of suburban graduates and 59% of urban graduates. College can make a huge difference in earning potential. An American man with a bachelor's degree earns an estimated $900,000 more over his lifetime than a peer with a high school diploma, research by the Social Security Administration has found. For women, the difference is about $630,000. A school takes cues from families' hopes and goals A lack of a college degree is no obstacle to opportunity in places such as Wyoming County, where people like to say there are more cows than people. The dairy farms, potato fields and maple sugar houses are a source of identity and jobs for the county just east of Buffalo. 'College has never really been, I don't know, a necessity or problem in my family,' said Townes, the middle of three children whose father has a tattoo shop in Perry. At Perry High School, Superintendent Daryl McLaughlin said the district takes cues from students like Townes, their families and the community, supplementing college offerings with programs geared toward career and technical fields such as the building trades. He said he is as happy to provide reference checks for employers and the military as he is to write recommendations for college applications. 'We're letting our students know these institutions, whether it is a college or whether employers, they're competing for you,' he said. 'Our job is now setting them up for success so that they can take the greatest advantage of that competition, ultimately, to improve their quality of life.' Still, college enrollment in the district has exceeded the national average in recent years, going from 60% of the class of 2022's 55 graduates to 67% of 2024's and 56% of 2025's graduates. The district points to a decision to direct federal pandemic relief money toward covering tuition for students in its Accelerated College Enrollment program — a partnership with Genesee Community College. When the federal money ran out, the district paid to keep it going. 'This is a program that's been in our community for quite some time, and it's a program our community supports,' McLaughlin said. About 15% of rural U.S. high school students were enrolled in college classes in January 2025 through such dual enrollment arrangements, a slightly lower rate than urban and suburban students, an Education Department survey found. Rural access to dual enrollment is a growing area of focus as advocates seek to close gaps in access to higher education. The College in High School Alliance this year announced funding for seven states to develop policy to expand programs for rural students. Higher education's image problem is acute in rural America Around the country, many students feel jaded by the high costs of college tuition. And Americans are increasingly skeptical about the value of college, polls have shown, with Republicans, the dominant party in rural America, losing confidence in higher education at higher rates than Democrats. 'Whenever you have this narrative that 'college is bad, college is bad, these professors are going to indoctrinate you,' it's hard,' said Andrew Koricich, executive director of the Alliance for Research on Regional Colleges at Appalachian State University in North Carolina. 'You have to figure out, how do you crack through that information ecosphere and say, actually, people with a bachelor's degree, on average, earn 65% more than people with a high school diploma only?' In much of rural America, about 21% of people over the age of 25 have a bachelor's degree, compared to about 36% of adults in other areas, according to a government analysis of U.S. Census findings. Some rural educators don't hold back on promoting college In rural Putnam County, Florida, about 14% of adults have a bachelor's degree. That doesn't stop principal Joe Theobold from setting and meeting an annual goal of 100% college admission for students at Q.I. Roberts Jr.-Sr. High School. Paper mills and power plants provide opportunities for a middle class life in the county, where the cost of living is low. But Theobold tells students the goal of higher education 'is to go off and learn more about not only the world, but also about yourself.' 'You don't want to be 17 years old, determining what you're going to do for the rest of your life,' he said. Families choose the magnet school because of its focus on higher education, even though most of the district's parents never went to a college. Many students visit college campuses through Camp Osprey, a University of North Florida program that helps students experience college dorms and dining halls. In upstate New York, high school junior Devon Wells grew up on his family farm in Perry but doesn't see his future there. He's considering a career in welding, or as an electrical line worker in South Carolina, where he heard the pay might be double what he would make at home. None of his plans require college, he said. 'I grew up on a farm, so that's all hands-on work. That's really all I know and would want to do,' Devon said. Neither his nor Townes' parents have pushed one way or the other, they said. 'I remember them talking to me like, `Hey, would you want to go to college?' I remember telling them, 'not really,'' Townes said. He would have listened if a college recruiter reached out, he said, but wouldn't be willing to move very far. ___ The Associated Press' education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP's standards for working with philanthropies, a list of supporters and funded coverage areas at
