Elevance Health [NYSE:ELV] did not submit a final bid for Cigna’s [NYSE:CI] Medicare Advantage  business last week, according to three sources familiar with the situation.

Last week, Bloomberg reported that Elevance Health, the Indianapolis-based health benefits company, was competing with HCSC to acquire Cigna’s Medicare Advantage business. HCSC (Health Care Services Corporation) is a member-owned health insurance company and the parent company of Blue Cross and Blue Shield of Illinois, Texas, New Mexico, Montana and Oklahoma.

The sources declined to name the other strategic that submitted a bid, but they noted that it is a well-capitalized player in the space.

In a last-ditch effort to get bidders to improve their offers for the Medicare Advantage business, Cigna asked them to submit their best and final offers tomorrow, two of the sources and an additional source said.

Last week, this news service reported that at least two strategics, including HCSC, turned in final bids for Cigna’s business on 12 December. HCSC is the frontrunner to acquire the Medicare Advantage business, the same report said. Cigna is expected to announce a deal towards the end of this year or early next year, as reported.

HCSC, which submitted a non-binding bid in the USD 5bn to USD 6bn range in the initial round, materially dropped its offer to the USD 3bn to USD 4bn range in the final round, each of the sources said. JPMorgan is HCSC’s financial advisor, two of the sources said. The other strategic’s final offer was substantially lower than HCSC’s, they said.

This news service previously reported that Cigna had received non-binding bids from some buyers valuing the business between USD 2.5bn and USD 5.5bn, and HCSC was at the higher end of the valuation range. At least one financial sponsor also submitted a bid in the initial round, the same report said.

This news service reported in early November that Cigna was working with Centerview Partners to explore strategic alternatives, including a sale, of its  Medicare Advantage business.

In December, the Wall Street Journal reported that Cigna had ended a prospective USD 140bn merger with the Louisville, Kentucky-based Humana [NYSE:HUM] after the two sides could not agree on financial terms.  WSJ had reported on deal talks between Cigna and Humana in late November.

Cigna declined comment. HCSC, Elevance and JPMorgan did not respond to requests for comment.