Company: CI
Filing Date: 2025-01-16
Form Type: CORRESP
Source: 0001739940-25-000005
Chunk: 7

Company: Cigna Group
Filing Date: 2025-01-16
Form: CORRESP
Chunk 7
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 low double - digit range. The slightly larger variance in margins observed during 2024 was driven by short-term trends in the U.S. Healthcare business and we do not believe it is an indicator of longer-term divergence. Additionally, over the time periods presented in the chart above, the U.S. Healthcare average margin was 9.1% and the International Health average margin was 10.2%, which are very similar on both an absolute and relative basis. In accordance with ASC 280-10-55-7A, our analysis also contemplated future margin expectations derived from our most recent multi-year strategic plan. For example, a ctual U.S. Healthcare margins reported in our historical filings include certain businesses currently classified as held for sale. The sale of these businesses is expected to close in early 2025 , and as a result, when we assessed the future prospects of the Cigna Healthcare operating segments , we analyzed margin expectations excluding the businesses held for sale. Our current strategic plan forecasts the U.S. Healthcare operating segment to generate margins at the higher end of the range relative to the International Health operating segment, with convergence expected over the next four years. We believe these analyses support the conclusion that the U . S . Healthcare and International Health operating segments are expected to have similar long-term economic characteristics.

#### Products Offered
As indicated in the analyses above, operating results vary from period to period primarily based on healthcare utilization by our customers and the mix of products sold. As noted in our response to the Staff’s prior comments, i n both the U.S. Healthcare and International Health operating segments , we strive to provide clients and customers with comprehensive medical health solutions. Our offerings are designed to include core medical as well as associated health solutions (examples include pharmacy, behavioral or dental) to achieve optimal health outcomes. We also provide multiple options for clients and customers to pay for their healthcare benefits , including fully insured and administrative services only arrangements. Clients and customers select the products and funding solutions that best suit their specific healthcare and financial risk management needs. While the product offerings across U.S. Healthcare and International Health are similar, individual clients and customers ultimately choose to bundle and utilize our products and services to satisfy their healthcare needs. The variation in customer buying and utilization behavior does not alter the conclusion that the products offered by both Cigna Healthcare operating segments are similar. Approximately 60% of the clients of our global health benefits business, which provides health benefits to employees while working outside of their home country, are also the largest multinational clients of our U