Company: CI
Filing Date: 2025-01-16
Form Type: CORRESP
Source: 0001739940-25-000005
Chunk: 1

Company: Cigna Group
Filing Date: 2025-01-16
Form: CORRESP
Chunk 1
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 Benefit Services growth ranged from 2% to 4%. We also note that in your earnings calls, management and analysts discussed the significant growth in your Specialty and Care Services on various occasions.

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Please provide us with the actual margins for each of these two operating segments in historical periods presented in your financial statements and further explain how you analyzed the similarity of the long-term average margins.

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Your response indicates that the historical margins as calculated as pre-tax adjusted income from operations divided by total adjusted revenues ranged from 3% to 5%. Please tell us how you considered the similarity of economic characteristics on both an absolute and relative basis and your basis for expecting the operating segments to exhibit similar long-term financial performance.

We acknowledge the Staff's comment requesting further elaboration. We considered both the economic similarities and differences in assessing the aggregation of the Pharmacy Benefit Services and the Specialty and Care Services operating segments. Management's expanded conclusions related to the operating segments' similar long-term financial performance

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expectations in accordance with ASC 280-10-50-11 and ASC 280-10-55-7A and how these determinations led to our decision to aggregate the two Evernorth Health Services ("Evernorth") operating segments into one reportable segment are detailed below.

How aggregating operating segments helps investors understand performance and assess future cash flow prospects

We believe that our decision to aggregate the Evernorth operating segments helps investors understand performance and assess future cash flow prospects based on the breadth and interaction of the products and services offered by these operating segments and the related value they bring to Evernorth's shared customer base. Evernorth's strategy is to go to market with a full suite of products and services that both (a) enables our customers to combine our products and services to create a comprehensive benefit offering designed to manage prescription drugs and provide independent and coordinated health solutions and capabilities and (b) addresses the needs of a shared customer base, ultimately benefiting both Evernorth operating segments. Evernorth's ability to deliver this broad array of healthcare services on both a standalone or combined basis between its two operating segments enables us to drive incremental growth.

The Pharmacy Benefits Services operating segment is comprised of our businesses that contribute steady, predictable growth, create value for our clients and customers by developing formularies, ensure adequate access to care and negotiate with pharmaceutical companies and pharmacies to bring down the cost of drugs. The Specialty and Care Services operating segment is comprised primarily of our emerging businesses in very attractive markets, which offer products and services designed to