NEW YORK (Reuters) - Cigna Corp (CI.N), which manages healthcare benefits for some of the largest U.S. corporations, said on Thursday that medical costs among its customers grew less than 3 percent in 2017, below its expectations.
Chief Executive Officer David Cordani, speaking with analysts after reporting fourth-quarter earnings, said even that growth rate was unsustainable. Medical costs typically rise faster than inflation, and most insurers typically report annual increases of 6 percent, plus or minus 100 basis points.
Cordani was responding to analyst questions about a new healthcare venture announced by JPMorgan Chase (JPM.N), Berkshire Hathaway (BRKa.N) and Amazon.com Inc Corp (AMZN.O), saying they needed to address too-high healthcare costs that were hurting business.
Reporting by Caroline Humer; Editing by Lisa Von Ahn