Cigna Group

Note 3 – Accounts Receivable, Net

The following amounts were included within Accounts receivable, net:

These accounts receivable are reported net of our allowances of $5.7 billion and $5.0 billion as of March 31, 2025 and December 31, 2024, respectively. These allowances include contractual allowances for certain rebates receivable with pharmaceutical manufacturers and certain accounts receivable from third-party payors, discounts and claims adjustments issued to customers in the form of client credits, an allowance for current expected credit losses and other non-credit adjustments.

The Company's allowance for current expected credit losses was $296 million as of March 31, 2025 and $84 million as of December 31, 2024.

Accounts Receivable Factoring Facility

The Company maintains an uncommitted factoring facility (the "Facility") under which certain accounts receivable may be sold on a non-recourse basis to a financial institution. The Facility began in July 2023 with an initial term oftwo years, followed by automaticone-year renewal terms unless terminated by either party. The Facility's total capacity is $1.5 billion.

We sold manufacturer accounts receivable under the Facility of $1.4 billion and $1.9 billion for the three months ended March 31, 2025 and 2024, respectively. For the three months ended March 31, 2025 and 2024, factoring fees paid were not material. As of March 31, 2025 and December 31, 2024, all sold accounts receivable had been collected from pharmaceutical manufacturers. As of March 31, 2025, all collections had been remitted to the financial institution. As of December 31, 2024, there was $1.0 billion of collections from pharmaceutical manufacturers that have not been remitted to the financial institution. Such amounts are recorded within Accrued expenses and other liabilities in the Consolidated Balance Sheets.