Welcome to the CHLIC transition broker information resource. This page includes CHLIC Transition Frequently Asked Questions (FAQs), Consent Periods by State, On-Demand Trainings, Notice of Transfer - States in Transition (for state Notice of Transfer packets that have been/are being mailed), Notice of Transfer Packet Enclosures (included in all state packets), and Third Party Administrator Notices.

Questions? We hope this resource provides you with everything you need to stay updated on how the CHLIC transition impacts you and your customers. For questions not covered here:

you may call the Agent Resource Center at 877-454-0923 - Monday through Friday, 8:00 AM to 5:30 PM CT.
your customers may call a line set up for CHLIC policyholders at 888-300-3713.

Consent and transition to MCLIC processing timelines: Currently taking longer than anticipated, please bookmark this site and return periodically for updates.

CHLIC Transition FAQs

The Cigna Group (“Cigna”) has sold its Medicare business to Health Care Service Corporation, a Mutual Legal Reserve Company (“HCSC”), the largest customer owned health insurer in the United States. Accordingly, we are transitioning the Medicare Supplement policies issued by Cigna Health and Life Insurance Company (“CHLIC”), a Cigna affiliate, to Medco Containment Life Insurance Company (“MCLIC”), which is now an HCSC affiliate. Policyholders will receive this offer to transfer their policy to MCLIC.

This is a very positive development for Cigna Medicare Supplement customers. The Cigna Group carefully chose HCSC to best position its Medicare businesses for continued growth and innovation, and we will continue to serve the needs of our valued customers.

HCSC is a mission-driven, member-focused organization.
HCSC is committed to the Medicare space and providing members with access to quality care in all stages of their lives.
We are excited about this focus and commitment and believe it will benefit policyholders.
Our goal is to provide the same level of customer experience that you have come to expect.

MCLIC is a wholly owned subsidiary of HCSC and has agreed to replace CHLIC as the insurer for this Medicare Supplement Policy.

No, there will be no impact to coverage or value-added services for policyholders.

Yes, policyholders may continue to see the same providers that they do today.

No, the transfer from CHLIC to MCLIC will not result in a rate increase. Policyholders will continue to receive normal annual premium rate change notices.

If policyholders are enrolled in a high deductible plan such High Deductible Plan F or G, their plan deductible will not start over.

No, claims will not be impacted by the transfer and will continue to process as they do today.

No, the transfer will not result in any changes to Household Discounts.

No. Medicare Supplement plans are guaranteed renewable, meaning that an issuer shall neither cancel nor non-renew a Medicare supplement policy or certificate for any reason other than nonpayment of premium or material misrepresentation. The sale of the Cigna Medicare Supplement business to HCSC will have no impact on guaranteed renewability.

Policyholder consent requirements are based on applicable regulations for the state of residence to afford consumer protections of that state regarding consent to the transfer.

Depending on state of residence, we may be permitted to transfer the policyholder if we have not received a response within the state’s consent period. Refer to the Consent period requirements by state section of this page or the email you received for the state in question for specific information on policyholder consent period and requirements.

No, brokers cannot consent on behalf of policyholders.

As indicated in the policyholder notices, they can reject or consent to the transfer. If they consent to the transfer, their policy will be transferred to MCLIC and will be maintained with no disruption. Policyholders will receive a new ID card for MCLIC and a MCLIC Certificate of Assumption which will serve as their new policy in the mail. After that point, all policy communications will refer to MCLIC.

Policyholders have the right to reject the transfer and must do so by actively sending their rejection. If they do reject the transfer their policy will remain on CHLIC.

No, policyholders will not need to make any changes to their bank draft. After they consent to transfer, their billing statements will be from MCLIC.

While CHLIC cards will continue to work, we will mail policyholders new ID cards as a confirmation of the transfer to MCLIC.

No, the transfer is specific to CHLIC.

No, this does not open a two-year contestability period for policyholders.

Policyholders may contact 888-300-3713 for questions related to the transfer from CHLIC to MCLIC.

You can find policyholder letters that have been issued on this page under Notice of Transfer- States in Transition. Transfer packet enclosures are on this page under Notice of Transfer- Packet Enclosures.

Standard chargeback rules apply to cancellations including policies that terminate during this transfer.

The policyholder will receive CHLIC policyholder documents. Once we begin notifying policyholders of the transfer, the newly-enrolled CHLIC policyholder will be moved into a catch up queue where we will mail them the application Notice of Transfer packet so they can subsequently consent or rejection the transfer.

In Book of Business, you can export a selection by state and product type to view which policies have moved to MCLIC. Please note that that policyholders are transitioned in waves. For further Updates on transition processing timelines, see Consent and transition to MCLIC processing timelines at the top of this page.

Base policy numbers will remain the same for all CHLIC to MCLIC (transitioned) policies but will be denoted with an “80” prefix. If MCLIC becomes a new for-sale option in a state, newly sold policies will have an “81” prefix. This is an easy way to tell transition vs. new sales MCLIC policies apart on Book of Business.

No, transferred policies will not count as new sales for incentives or toward future incentive trips.

No, commissions will not change.

For states that you are currently appointed for CHLIC and MCLIC is the chosen replacement charter, you will be appointed for MCLIC. No additional appointment fees will be applied.

Yes, MCLIC will be actively sold in a small number of states. Further information will be made available during the transition.

Yes, the Agent of Record will be preserved.

Yes. Due to licensing rules in the state of New York, CHLIC policyholders who are New York residents are exempt from the transition at this time.

CHLIC Internal Replacements: Following the formal DOI Discontinuance Date (will vary by state) of CHLIC, CSB will not support any internal replacements within CHLIC. For any policyholders who remain on CHLIC (ie those policyholders who rejected the transfer; New York state residents), they will not be able to move to a different plan within CHLIC.

MCLIC Internal Replacements: Once a policyholder is in MCLIC, either via the transfer or through a new sale, MCLIC policyholders will follow the same internal replacement rules we allow for other policies today, IF MCLIC is a “for sale” policy in that market. If MCLIC is NOT actively sold in a state, internal replacements are not available.

CHLIC Affiliate Replacements:

Affiliate Replacements FROM CHLIC to other actively sold policies in a given market will follow same process as we use today for Affiliate Replacements
Affiliate Replacements TO CHLIC will not be permitted after CHLIC Discontinuance in a given state

MCLIC Affiliate Replacements:

Affiliate Replacements FROM MCLIC to other actively sold policies will follow same process as we use today for Affiliate Replacements
Affiliate Replacements TO MCLIC will only be permitted if MCLIC is actively sold and not otherwise discontinued (see same comment for MCLIC Internal Replacements)

This transition will not change your tax liability. You will receive an additional 1099 from Cigna for the business that has moved to MCLIC, in addition to the CHLIC 1099 and any others you current receive from Cigna.

For example: If you wrote all CHLIC business in one state, and it was 100% transferred to MCLIC, the 1099 would be sent as follows:

CHLIC – YTD from the transition to MCLIC
MCLIC – Amount would start based on earnings as of the transition date

CHLIC Transition

CHLIC Transition FAQs

On-Demand Training

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Notice of Transfer - States in Transition (posted as policyholder Notice of Transfer mailings are announced for each state)

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Notice of Transfer - Packet Enclosures and Sample Certificate of Assumption Letter

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Third Party Administrator Notices

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CHLIC Transition

CHLIC Transition FAQs

Why are Cigna Health and Life Insurance Company (CHLIC) policyholders receiving this communication?

Why did The Cigna Group sell their Medicare Businesses to HCSC? Why is the transition to HCSC a good thing Cigna Medicare Supplement policyholders?

Who is MCLIC?

Will coverage or value-added services for policyholders be impacted by the transfer from CHLIC to MCLIC?

Will policyholders be able to continue to see the same providers that they do currently after the transfer?

Will policyholders experience a rate increase because of the transfer?

If policyholders are enrolled in a high deductible plan, will their plan deductible start over because of the transfer?

Will this impact payment of recent claims under CHLIC?

Will this transfer impact the Household Discount policyholders currently receive?

Medicare Supplement policies are Guaranteed Renewable for the lifetime of the policyholder. Does the sale to HCSC impact this?

Are policyholder consent requirements based on state of policy issuance or state of residence?

What happens if a policyholder does not respond?

Can I consent on behalf of the policyholder?

What can policyholders expect once they consent to the transfer?

What happens if policyholders want to reject the transfer?

Do policyholders have to update their bank draft? Are there any changes to billing?

Will policyholders need a new ID card?

Will policyholders on other Cigna affiliates receive notices?

Does this open another two-year contestability period for policyholders?

What telephone number can policyholders call with questions regarding the transfer?

Where can I view the communication that has been shared with policyholders?

Will I be charged back if a policyholder decides to terminate the policy?

What happens if I sell CHLIC to a policyholder before the discontinuance date, but the effective date occurs after we have stopped selling CHLIC in a given state?

How am I able to see the percentage of transferred policyholders by state?

Will policy numbers change with the transition? How will I tell transition vs. new sale MCLIC policies apart?

Will transferred policies count as new sales for incentives or toward future incentive trips?

Will my commission change?

If I am currently appointed for CHLIC for a given state, do I need to request to be appointed to MCLIC?

Will MCLIC be one of the new charters actively sold?

Will the Agent of Record be preserved?

Are there any states or groups exempt from this transition?

How will replacements be handled with this transition?

How will this transition affect my taxes?

State(s)

Consent Periods

AL, AR, AZ, CT, DE, FL, IA, IL, IN, KY, LA, MD, MS, MT, ND, NH, NJ, NM, NV, OH, OK, SC, SD, TN, TX, UT, VA, WV, WY

State(s)

State(s)

State(s)

State(s)

State(s)

On-Demand Training

Notice of Transfer - States in Transition (posted as policyholder Notice of Transfer mailings are announced for each state)

Notice of Transfer - Packet Enclosures and Sample Certificate of Assumption Letter

Third Party Administrator Notices