Cigna names Evernorth Health Services CEO Terry Hoffman as CEO

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Cigna names Evernorth Health Services CEO Terry Hoffman as CEO

Reuters - U.S. health insurer Eric Palmer named company veteran Terry Hoffman the president and CEO of his Evernorth Health Services unit which houses its pharmacy benefit management business on Thursday.

The appointment comes as the health service unit which was rebranded as Evernorth in September last year has shown resilient growth in the past few quarters.

Palmer, who has been with Cigna for 23 years and most recently served as Chief Operating Officer of Evernorth, will start his new role in January.

Tim Wentworth, the current CEO of Evernorth, will retire by January this year, the company said.

The health insurer also announced several other leadership changes to help accelerate growth across its business portfolio.

Health insurers are facing several difficulties due to the COVID--19 pandemic, including higher costs related to testing, treatment and vaccinations as well as direct disenrollment in employer-sponsored plans from its economic impact.

Evernorth comprises the pharmacy benefits management business Accredo acquired through the 2018 acquisition of Express Scripts as well as its specialty pharmacy business Cigna.

Pharmacy benefit managers PBMs serve as intermediaries between drug manufacturers, health plans and pharmacies to negotiate prescription drug prices.