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Cigna announced it will exit the Affordable Care Act marketplace beginning in 2027, becoming the second major insurer to withdraw from the exchanges as uncertainty grows across the individual insurance market. The decision follows the expiration of enhanced federal subsidies that had helped millions afford coverage.
Executives revealed the move during the company’s earnings call Thursday, where Cigna reported stronger-than-expected financial results. The insurer posted $1.7 billion in net income for the first quarter, The Hill reported.
Company leadership said the ACA business no longer aligns with its long-term strategy.
“We did not make this decision lightly, and appreciate the importance of ensuring patients have continuity through the transition,” said Brian Evanko, Cigna’s president and incoming chief executive.
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Evanko said the company does not see a viable path to scaling its ACA plans into a meaningful part of its business. “This is small business for us today, and it’s been shrinking in recent years,” he said.
Cigna’s withdrawal will affect approximately 369,000 members across 11 states. The company serves more than 18 million members overall, making its ACA footprint a relatively small portion of its total operations.
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Enrollment in Cigna’s exchange plans has declined significantly over the past year. Membership fell from roughly 446,000 in early 2025 to about 369,000 in 2026, a drop of nearly 17 percent.
The company’s decision follows a similar move by Aetna, which exited the ACA exchanges earlier this year. Together, the departures have raised questions about the long-term stability of the marketplace.
WSJ: Another shakeup in the Affordable Care Act market: Cigna is exiting, following Aetna’s departure — as rising premiums and falling enrollment continue to rattle the system. https://t.co/s8GPKg0Lyp
— Geoff Bennett (@GeoffRBennett) April 30, 2026
The broader ACA market has already seen declining enrollment after Congress failed to extend enhanced subsidies that lowered premiums. Those subsidies had made coverage free for many low-income individuals and more affordable for middle-income households.
Initial enrollment dropped by about 1.2 million people this year, and analysts expect further declines as higher premiums take effect. Insurers are now facing increased uncertainty as they prepare pricing for future plans.
The Trump administration has attributed the enrollment drop in part to efforts to eliminate fraud within the system. Officials have argued that some individuals losing coverage may not have been eligible in the first place.
Cigna To Exit Obamacare In 2027, Affecting Coverage For 369,000 https://t.co/vZDenkjANs (Photo: Bloomberg) pic.twitter.com/YqkBz2UJuD
— Forbes (@Forbes) April 30, 2026
Cigna’s exit adds to ObamaCare marketplace upheaval #TheHill https://t.co/7iS36yfX6J
— #TuckFrump (@realTuckFrumper) May 1, 2026
Cigna is pulling out of the Obamacare marketplace, leaving 369,000 people to find new coverage: The insurer told investors on its Q1 earnings call that it sees no path to meaningful growth in the individual market https://t.co/g2stK7TJsW
— Quartz (@qz) May 1, 2026
A new era for @TheCignaGroup. 🚀 Incoming CEO Brian Evanko is shifting focus: exiting the ACA exchange to double down on a “relentless” push for healthcare affordability.https://t.co/7ktGcUteoY#Cigna #HealthcareNews #HealthAffordability
— InsuranceNewsNet (@InsNewsNet) May 1, 2026
Health policy experts warn that rising costs could create a cycle of higher premiums. Younger and healthier individuals are more likely to drop coverage when prices increase, leaving insurers with a higher-risk pool of policyholders.
That shift can drive up overall costs, prompting insurers to raise premiums further to cover expenses. The dynamic has been a longstanding concern within the ACA marketplace.
So far, the exits have not created the same level of disruption seen in 2017, when some counties faced the possibility of having no insurers offering exchange plans. However, affordability remains a central issue for consumers and policymakers.
The future of the ACA marketplace is expected to play a role in upcoming elections, as both parties highlight healthcare costs and coverage access. Democrats have criticized Republicans for not extending the subsidies, while Republicans have pointed to structural issues within the system.
Cigna said it will work to ensure a smooth transition for affected members ahead of its departure in 2027.
