Cigna won’t be able to enroll members into Medicare Advantage or prescription drug plans due to deficiencies found in a recent audit. The Centers for Medicare and Medicaid Services has temporarily barred Cigna from enrolling new customers to its Medicare Advantage and stand-alone prescription drug plans due to findings from an audit of Cigna-HealthSpring.

The CMS has also barred the network from marketing efforts. The sanctions come after deficiencies were found in the operations of Cigna’s Part C and D appeals and grievances. Issues with the Part D formulary and benefit administration and compliance program were also found, according to Cigna and the Securities and Exchange Commission.

“Until those items can be resolved, CMS has imposed a suspension of all enrollment and marketing activities to sign Medicare customers,” according to a statement from Cigna.

“Violations resulted in enrollees experiencing delays or denials in receiving medical services and prescription drugs, and increased out-of-pocket costs for medical services and prescription drugs,” Gerald Mulcahy, director of the CMS Medicare Parts C and D Oversight and Enforcement Group, told HealthSpring President herm Fritch in a January 21 Letter.

“Cigna has had a longstanding history of non-compliance with CMS requirements. Cigna has received numerous notices of non-compliance, warning letters, and corrective action plans from CMS over the past several years. A number of these notices were for the same violations discovered during the audit, demonstrating that Cigna has not corrected issues of noncompliance,” said Mulcahy.

HealthSpring was acquired by Cigna in 2012, adding more than 1 million Medicare beneficiaries to its network.

Unfortunately the acquisition led to an organizational structure that was decentralized and fragmented according to the CMS.