Medco Containment Life Insurance Company (MCLIC) plays a vital role in the health insurance landscape, particularly for Medicare beneficiaries. As a subsidiary of Cigna, a leading health insurance provider, MCLIC specializes in Medicare Supplement insurance, commonly known as Medigap.
These plans help cover costs that Original Medicare (Parts A and B) does not, such as deductibles, copayments, and coinsurance. With a history rooted in pharmaceutical and insurance services, MCLIC has grown into a trusted option for seniors seeking financial protection for their healthcare needs.
This article examines MCLIC’s history, services, recent developments, customer feedback, and its comparison to competitors, offering a clear picture for those considering its plans.
Table of Contents
Company History
MCLIC’s story begins with its parent company, Medco Health Solutions, which started as National Pharmacies in 1983. In 1984, following an initial public offering (IPO), the company became Medco Containment Services, LLC. By 1993, Merck & Co. acquired the company, renaming it Merck-Medco.
In 2003, Medco Health Solutions regained its independence, focusing on mail-order pharmaceutical sales and health insurance services. In 2012, Express Scripts acquired Medco Health Solutions, but MCLIC continued to operate as a distinct entity under Cigna’s umbrella, specializing in life and health insurance for Medicare beneficiaries.
This history of mergers and independence highlights MCLIC’s adaptability. Its affiliation with Cigna, finalized through acquisitions like the 2018 Cigna-Express Scripts merger, provides financial stability and a strong foundation for its operations. Today, MCLIC focuses on delivering Medicare Supplement plans to help seniors manage healthcare costs effectively.
Services Offered
MCLIC’s primary offering is Medicare Supplement insurance, designed to fill the gaps left by Original Medicare. These plans cover expenses such as hospital stays, doctor visits, and other medical services that Medicare does not fully cover. MCLIC offers several standardized Medigap plans, each with different levels of coverage to suit various needs and budgets. Below is a breakdown of the plans available:
| Plan | Key Coverage |
| Plan A | Covers Part A coinsurance, hospital costs (after deductible), hospice care, and Part B coinsurance/copayment. |
| Plan B | Includes everything in Plan A plus the Part A deductible. |
| Plan F | Covers all Medicare-approved costs, including Part A and B deductibles, skilled nursing care, and 80% of foreign travel emergency costs. |
| High Deductible F (HDF) | Similar to Plan F but with a higher deductible for lower premiums. |
| Plan G | Like Plan F, but excludes the Part B deductible. |
| Plan N | Cost-effective, covers most expenses, but includes $20 copays for doctor visits and $50 for emergency room visits. |
These plans offer flexibility, enabling policyholders to select coverage that aligns with their specific healthcare needs. For example, Plan F is ideal for those seeking comprehensive coverage, while Plan N is suited for those looking for lower premiums with manageable copays.
MCLIC also offers household discounts, making its plans attractive for families with multiple Medicare-eligible members. Policyholders can visit any doctor or hospital that accepts Medicare, without needing referrals or restricted provider networks.
Recent Developments
In 2024, MCLIC began a significant transition, replacing Cigna Health and Life Insurance Company (CHLIC) as the insurer for many Medicare Supplement policyholders. This process started on March 15, 2024, and is ongoing, with notifications sent to policyholders across various states. The transition is part of Cigna’s strategy to streamline its operations and enhance service delivery. Below are key details about the transition:
| State Group | Consent Period | Details |
| CO, KS, ME, NE, NC, RI | 25 months | Final notice at 24 months; deemed consent if no response. |
| AL, AR, AZ, CT, DE, FL, IA, ID, IL, IN, KY, LA, MD, MS, MT, ND, NH, NJ, NM, NV, OH, OK, PA, SC, SD, TN, TX, UT, WV, WY | 90 days | Second notice at 60 days; deemed consent if no response. |
| MO | 30 months | Second notice at 12 months, final at 24 months; deemed consent if no response. |
| OR | 13 months | Final notice at 12 months; deemed consent 30 days after final notice. |
| VT | 14 months | Final notice at 12 months; deemed consent 60 days after final notice. |
| CA, MI, MN, WA, WI | Affirmative consent required | Additional notices at reasonable intervals. |
| VA | Consent period TBD | Specific details pending. |
New York residents are exempt from this transition due to state licensing regulations. Policyholders were assured that their coverage, benefits, and premiums would remain unchanged, with MCLIC assuming all responsibilities previously held by CHLIC. This transition has been carefully managed to minimize disruption, with formal notices and clear communication provided to policyholders.
Customer Reviews and Satisfaction
Feedback on MCLIC’s services is generally positive, with many policyholders appreciating the comprehensive coverage and ease of claims processing. The ability to choose any Medicare-accepting provider without referrals is a significant advantage.
However, some customers have reported challenges with customer service response times and occasional claim denials, which are common issues in the insurance industry.
MCLIC has responded by investing in improved customer support and claims handling processes to enhance the policyholder experience.
Comparison with Competitors
MCLIC stands out due to its affiliation with Cigna, which provides financial stability and a trusted brand name. Its Medicare Supplement plans are competitively priced, and household discounts add value for families. Compared to competitors like UnitedHealthcare or AARP, MCLIC’s plans offer similar coverage, but pricing and additional benefits may vary.
For example, Plan F from MCLIC covers all Medicare-approved costs, but competitors may offer additional perks, such as wellness programs. Policyholders should compare premiums, coverage details, and customer service ratings when choosing an insurer. MCLIC’s focus on Medicare Supplement plans, combined with its backing from Cigna, makes it a strong contender in the market.
Benefits of Choosing MCLIC
Opting for MCLIC offers several advantages for Medicare beneficiaries:
- Comprehensive Coverage: Plans cover a wide range of out-of-pocket costs, reducing financial stress.
- Flexibility: Multiple plan options enable policyholders to select the one that best suits their needs and budget.
- Financial Stability: Cigna’s backing ensures reliability and trust.
- Provider Freedom: No need for referrals or restricted networks; any Medicare-accepting provider is covered.
- Household Discounts: Savings for families insuring multiple members.
- Emergency Coverage: Plans like F and G cover 80% of foreign travel emergency costs (after a $250 deductible, up to a $50,000 lifetime limit).
These benefits make MCLIC a compelling choice for individuals seeking reliable Medicare Supplement insurance.
Financial Strength and Ratings
MCLIC’s financial performance is closely tied to Cigna’s overall stability. MCLIC’s earnings have remained positive, though they’ve declined slightly due to increased management fees paid to Cigna. AM Best has placed MCLIC’s Financial Strength Rating (FSR) of A (Excellent) under review with developing implications, reflecting ongoing monitoring of the Cigna-Express Scripts merger’s impact. This rating indicates that MCLIC remains a financially sound option for its policyholders.
How to Enroll with MCLIC
Enrolling in an MCLIC Medicare Supplement plan is a straightforward process. Policyholders can contact MCLIC directly at 1-888-559-0103 or visit Cigna’s Medicare Supplement page for more information. It’s advisable to compare plans during the Medicare Open Enrollment period or when first eligible for Medicare to secure the best rates. MCLIC’s customer service team can guide applicants through the process, ensuring they select the right plan.
Addressing Common Concerns
The transition from CHLIC to MCLIC has raised questions among policyholders, particularly about rate stability and service continuity. MCLIC has emphasized that premiums and benefits remain unchanged, and the transition is purely administrative in nature.
However, policyholders should monitor communications from MCLIC and review their policy details to ensure a smooth transfer. For those hesitant about the transition, exploring other insurers during open enrollment is an option, though MCLIC’s plans remain competitive.
Conclusion
Medco Containment Life Insurance Company is a reliable choice for Medicare Supplement insurance, offering a range of plans to meet diverse needs. Its affiliation with Cigna, comprehensive coverage, and ongoing efforts to improve customer service make it a strong contender in the Medigap market.
The 2024 transition from CHLIC to MCLIC, while initially concerning for some, has been managed with transparency, ensuring no disruption to policyholders’ coverage. For Medicare beneficiaries seeking financial protection and flexibility, MCLIC is a worthwhile option to consider. Always compare plans and consult with an insurance advisor to find the best fit for your healthcare needs.
