Company: CI
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001739940-25-000009
Chunk: 635

Company: Cigna Group
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7
Chunk 635
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 and collection history. When circumstances related to specific collection patterns change, estimates of the recoverability of receivables are adjusted.The Company's accounts receivable include amounts due from clients, third-party payors, customers and pharmaceutical manufacturers, and are presented net of allowances. These balances include the following:•Noninsurance customer receivables - amounts due from customers for noninsurance services, primarily pharmacy benefit management and ASO contracts.•Pharmaceutical manufacturers receivables - amounts due from pharmaceutical manufacturers. •Insurance customer receivables - amounts due from customers under insurance and managed care contracts, primarily premiums receivable and amounts due from CMS.•Other receivables - all other accounts receivable not included in the categories above.

The following amounts were included within Accounts receivable, net:(In millions)December 31, 2024December 31, 2023Noninsurance customer receivables$11,879 $8,044 Pharmaceutical manufacturers receivables10,914 8,169 Insurance customer receivables3,199 2,359 Other receivables162 272 Total$26,154 $18,844 Accounts receivable, net classified as assets of businesses held for sale(1,927)(1,122)Total$24,227 $17,722 

These receivables are reported net of our allowances of $5.0 billion and $3.7 billion as of December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, these allowances were primarily comprised of $4.3 billion and $3.1 billion, respectively, associated with contractual allowances for certain pharmaceutical manufacturers rebate receivables; $388 million and $386 million, respectively, associated with contractual allowances for third-party payor noninsurance customer receivables; and $84 million and $90 million, respectively, associated with allowances for current expected credit losses. The remaining allowances include discounts and claims adjustments issued to customers in the form of client credits and other non-credit adjustments. 

Accounts Receivable Factoring FacilityThe Company maintains an uncommitted factoring facility (the "Facility") under which certain accounts receivable may be sold on a nonrecourse basis to a financial institution. The Facility began in July 2023 with an initial term of two years, followed by automatic one-year renewal terms unless terminated by either party. The Facility's total capacity at inception was $1.0 billion and was amended