Cigna
| Cigna | |
 | |
| Basic facts | |
| Location: | Bloomfield, Conn.[1] |
| Top official: | David M. Cordani, President, CEO and director |
| Year founded: | 1982 |
| Website: | Official website |
Cigna is an international health services organization based in the United States. The company offers a global portfolio of health insurance products including medical coverage, dental insurance, vision plans, pharmaceutical insurance, behavioral health coverage, and supplemental benefits. Though Cigna specializes in health insurance, the company also offers accident and disability coverage as well as group life insurance. Cigna Corporation provides insurance coverage through its subsidiaries: Connecticut General Life Insurance Company, Cigna Health and Life Insurance Company, Cigna Life Insurance Company of New York, and the Life Insurance Company of North America. Through its variety of insurance products, Cigna has 89 million customers across 30 countries.[2]
As of March 2016, Cigna's proposed merger with Anthem, a U.S.-based health insurance company, is pending approval from federal antitrust regulators.[3]
History
CIGNA was established in 1982 through the merger of the Insurance Company of North America (INA) and the Connecticut General Life Insurance Company (CG).[4]
Insurance Company of North America
The INA, which issued the nation's first marine insurance policies, was founded in 1792. The company added fire and life insurance policies to its insurance portfolio and, in 1887, embarked on international expansion. INA established insurance agents in England, Austria, and Argentina and became the first U.S.-based life insurance company to issue policies in China. In 1946, INA created a specialized international department to manage its growing insurance offerings across Europe, Africa, Asia, South America, and the Near East.[4]
| INA and CG insurance offerings, 1792-1964[4] |
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INA established the Life Insurance Company of North America (LINA) in 1956 in order to manage and develop its life insurance policies and group coverage. INA increased its workers' compensation offerings and West Coast presence through the acquisition of the Pacific Employers Group (PEG) in 1965. Two years later, INA created the overarching INA Corporation, which allowed the company to further grow its insurance business and financial interests.[4]
Connecticut General Life Insurance Company
The Connecticut General Life Insurance Company (CG) was created in 1865. CG offered its first accident insurance policy in 1912 and its first group life insurance policy in 1913. The company expanded to offer group accident and group sickness insurance in 1919 as well as group pension contracts in 1924. Over the next several decades, CG added group health insurance, catastrophic medical coverage, and group dental plans to its insurance portfolio. In 1967, CG created a holding company, Connecticut General Insurance Corporation, which allowed the company to further diversify its insurance offerings in addition to its investment interests. CG established the company's first mutual funds in 1968, which allowed the company to broaden its investment products. The company's growing portfolio of insurance and investment opportunities prompted CG to restructure as a general business corporation, the Connecticut General Corporation, in 1981.[4]
Merger
The INA Corporation merged with the Connecticut General Corporation in 1981 and formed Cigna in 1982. Through a series of corporate acquisitions, Cigna further diversified its health insurance portfolio. The company offered prepaid dental insurance, pioneered behavioral-health disability benefits, added vision insurance, and participated in Medicare and Medicaid coverage. Cigna broadened its international market through the establishment of Cigna International, Cigna International Financial Services, and participation in joint ventures with regional partners.[4]
Cigna began to refocus its efforts on the health insurance market during the 1990s and early 2000s. The company sold a number of its non-health insurance offerings and unrelated financial interests during this period in order to specialize in the health insurance industry. Today, Cigna brands itself as a "global health service company dedicated to helping people improve their health, well-being and sense of security."[4]
Work
As an international health services organization, Cigna offers a variety of health insurance products to more than 14.5 million consumers in the United States and around the world. Cigna's health insurance offerings include medical coverage, pharmaceutical plans, Medicare and Medicaid plans, dental insurance, vision coverage, and behavioral health services. The company maintains more than one million partnerships with global healthcare providers and managed over 150 million medical claims in 2014. In addition to its health insurance offerings, Cigna also markets accident and disability coverage as well as group life insurance. The company's global network includes 89 million customers across 30 countries.[2][5]
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| Healthcare policy in the U.S. |
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| Obamacare overview |
| Obamacare lawsuits |
| Medicare and Medicaid |
| Healthcare statistics |
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Lobbying
Cigna engages in a variety of lobbying activities within state legislatures, the federal government, and regulatory agencies in order to support its business objectives and healthcare goals. According to the company's 2015 Political Contributions and Lobbying Activity Report, Cigna's 2015 lobbying priorities included expanding affordable healthcare access, increasing health insurance competition, growing healthcare sustainability and supporting the Medicare Advantage program.
The following table details Cigna's federal lobbying expenditures according to data from the Center for Responsive Politics:[6]
| Click "show" to the right to view Cigna's federal lobbying expenditures, 1998-2015 | |
|---|---|
| Tax Year | Total Expenditures |
| 2015 | $5,180,000 |
| 2014 | $3,550,000 |
| 2013 | $2,260,000 |
| 2012 | $2,550,000 |
| 2011 | $1,220,000 |
| 2010 | $2,010,000 |
| 2009 | $1,830,000 |
| 2008 | $1,261,436 |
| 2007 | $1,220,000 |
| 2006 | $680,000 |
| 2005 | $520,000 |
| 2004 | $910,000 |
| 2003 | $1,980,000 |
| 2002 | $1,400,000 |
| 2001 | $1,920,000 |
| 2000 | $1,538,440 |
| 1999 | $1,580,000 |
| 1998 | $1,340,000 |
Cigna also supports its lobbying outreach through membership in state and national trade associations. Cigna was a member of the following trade associations in 2015:
- America's Health Insurance Plans (AHIP)
- Connecticut Association of Health Plans
- Council for Affordable Quality Health Care
- Florida Association of Health Plans
- National Association of Dental Plans
- New Jersey Association of Health Plans
- Pharmaceutical Care Management Association
- United States Chamber of Commerce
- Virginia Association of Health Plans
- American Benefits Council
- Texas Association of Health Plans
- Illinois Association of Medicaid Health Plans
Political contributions
Cigna primarily contributes to political causes through CignaPAC, the company's political action committee that supports local, state, and federal candidates as well as political parties and organizations that share in Cigna's healthcare mission. CignaPAC is a bipartisan organization that supports the company's political priorities through voluntary contributions from Cigna employees. The CignaPAC board of directors oversees the political contributions of CignaPAC and ensures that all political activity adheres to the CignaPAC political contribution guidelines. In reviewing a candidate for potential contributions, CignaPAC takes into consideration the candidate's voting record, committee assignments, positions on applicable business issues, geographic location and long-term political prospects.[7]
The following table details CignaPAC's political contributions as of March 2016 according to data from the Center for Responsive Politics:[8]
| CignaPAC political contributions, 2002-March 2016 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Election cycle | Federal candidates | Political committees | State/local candidates | National political parties | Joint fundraising committees | State/local political parties | Miscellaneous | Total contributions |
| 2016 | $115,500 | $32,500 | $11,000 | $50,000 | -- | $2,500 | -- | $211,500 |
| 2014 | $356,019 | $59,250 | $105,980 | $87,000 | -- | $50,600 | -- | $658,800 |
| 2012 | $240,000 | $16,000 | $35,540 | $75,000 | $8,500 | $26,500 | -- | $401,500 |
| 2010 | $214,650 | $7,000 | $8,160 | $65,000 | $2,500 | $32,500 | -- | $329,800 |
| 2008 | $197,572 | -- | $70,960 | $80,000 | -- | $30,500 | -- | $379,000 |
| 2006 | $61,028 | $250 | $20,750 | $-21,000 | -- | $1,000 | -- | $62,000 |
| 2004 | $421,226 | $5,614 | $8,000 | $75,000 | $13,000 | $36,700 | -- | $559,500 |
| 2002 | $15,000 | $15,000 | -- | $60,000 | -- | $10,000 | $1,955 | $102,000 |
Cigna also engages in direct corporate political contributions in certain states where the practice is legally permissible. The company also makes direct corporate contributions within legal guidelines to voter referendums and national political parties. Cigna contributes corporate funds to political causes in accordance with the law, executive oversight, and the company's internal political contributions policies.[7]
The following table details Cigna's 2015 direct corporate political contributions:[7]
| Direct corporate political contributions for Cigna, 2015 | ||
|---|---|---|
| Political organization | Total contributions | |
| New York State Democratic Assembly Campaign Committee Housekeeping Account | $15,000 | |
| New York Senate Democratic Committee Housekeeping Account | $20,000 | |
| New York Senate Republican Campaign Committee Housekeeping Account | $15,000 | |
| Republican Governors' Association | $100,000 | |
| Republican Attorneys General Association | $50,000 | |
| Democratic Attorneys General Association | $50,000 | |
| Democratic Governors’ Association | $100,000 | |
Public service
Cigna engages in community outreach and public service through the Cigna Foundation, a 501(c)(3) private foundation founded in 1962 that aims to support community healthcare organizations and outreach. The foundation's World Difference Grants provide funding to community healthcare organizations and build local partnerships with Cigna professionals to share the company's healthcare knowledge and experience.[9][2]
In 2007, the Cigna Foundation put forward a $1 million grant to establish the Global Knowledge Exchange Network (GKEN). The network aims to build collaboration between government leaders, healthcare providers, philanthropic leaders, business innovators, academia, and health insurance companies to improve global healthcare practices.[4]
Affordable Care Act
- See also: Healthcare.gov website rollout
Cigna coordinated with the federal government to provide health benefits to consumers following the passage of the Affordable Care Act (ACA). In 2014, Cigna enrolled between 75,000 and 100,000 individuals in health insurance plans in Arizona, Florida, Colorado, Texas, and Tennessee under the ACA. By 2015, Cigna insured roughly 230,000 individual ACA customers. However, Cigna pulled out of Florida's health insurance marketplace at the end of 2015 due to "soaring costs in its Florida plans on fraud and abuse in 'out-of-network substance abuse clinics and labs.'"[10][11]
Though Cigna failed to turn a profit through its ACA coverage in 2014 or 2015, CEO David Cordani remained committed to participating in the ACA. In a 2015 interview with Insurance and Financial Advisor, Cordani explained, "When the law put in place the exchanges, we took a bit of a different public position than many of our competitors. We saw the exchange marketplace as a potentially attractive long-term viable market." Cigna plans to participate in the ACA through 2016 according to its interpretation of "2014, 2015 and 2016 as Version 1.0" of the individual mandate. Cordani remained neutral regarding Cigna's future ACA participation in 2017.[10][12]
As of March 2016, Cigna offered health benefit plans through the health insurance marketplaces in Texas, Arizona, Colorado, Missouri, Tennessee and Georgia.[13]
Opposition
2016 presidential election
On October 21, 2015, Hillary Clinton said she had "serious concerns" about Anthem’s planned acquisition of Cigna and other mergers between health insurers. "As we see more consolidation in health care, among both providers and insurers, I'm worried that the balance of power is moving too far away from consumers," Clinton said.[3]
Anthem, a U.S. health insurance company, announced its planned acquisition of Cigna in the summer of 2015 and shareholders of both companies approved the merger in December 2015. Varying reports estimate the value of the acquisition between $47 billion and $54 billion. The merger would position the combined Anthem-Cigna as the nation's largest health insurance provider with 53 million policyholders across the country. As of March 2016, the merger is pending approval from federal antitrust regulators while investigators determine the scope of potential negative impacts on consumer pricing, access to care, and market competition.[3][14]
U.S. Department of Justice lawsuits
The U.S. Department of Justice filed lawsuits on July 21, 2016, to halt the proposed merger between Cigna and Anthem as well as the merger between Aetna and Humana. The lawsuits arose from concerns that the proposed mergers would limit competition in the health insurance market, raise health insurance premiums, and create challenges for the Affordable Care Act.[15]
“If allowed to proceed, these mergers would fundamentally reshape the health insurance industry,” said Attorney General Loretta Lynch.“They would leave much of the multi-trillion dollar health insurance industry in the hands of three mammoth insurance companies, drastically constricting competition in a number of key markets that tens of millions of Americans rely on to receive health care.”[15]
All four health insurers intended to fight the lawsuits. According to Reuters, Cigna stated that it was "evaluating its options."[16]
U.S. District Judge Amy B. Jackson halted the proposed merger between Cigna and Anthem on February 8, 2017, amid concerns that the merger would hurt competition in the health insurance market.[17]
Leadership
As of March 2016, the following individuals held leadership positions with Cigna:
Executive leadership
- David M. Cordani, President, CEO and director
- Lisa Bacus, Executive vice president and global chief marketing officer
- Mark Boxer, Executive vice president and global chief information officer
- Nicole Jones, Executive vice president and general counsel
- John Murabito, Executive vice president, human resources and services
- Thomas McCarthy, Executive vice president and chief financial officer
- Jason Sadler, President, international markets
- Herb Fritch, President, Cigna-HealthSpring
- Matthew Manders, President, U.S. commercial markets and global healthcare operations
- Alan Muney, Chief medical officer[18]
Board of directors
- David M. Cordani, President, CEO and director of Cigna
- Eric J. Foss, Chairman, president, CEO, and director of ARAMARK Corporation
- Michelle D. Gass, Chief merchandising and customer officer of Kohl’s Corporation
- Isaiah Harris Jr., Former president and CEO of AT&T Advertising & Publishing, East
- Jane E. Henney, Former senior vice president, provost and professor of medicine, University of Cincinnati College of Medicine
- Roman Martinez IV, Private investor
- John M. Partridge, Former president of Visa Inc.
- James E. Rogers, Former chairman, president and CEO of Duke Energy Corporation
- Eric C. Wiseman, Chairman and CEO of VF Corporation
- Donna F. Zarcone, President and CEO of The Economic Club of Chicago
- William D. Zollars, Former chairman, president and CEO of YRC Worldwide Inc.
- Fernando Aguirre, Former chairman, president and CEO, Chiquita Brands International Inc.[19]
Recent news
The link below is to the most recent stories in a Google news search for the terms Aetna. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.
See also
External links
Footnotes
- ↑ Cigna, "Contact us," accessed March 29, 2016
- ↑ 2.0 2.1 2.2 Cigna, "Cigna Foundation Renews World of Difference Grant to Community Solutions," December 2, 2015
- ↑ 3.0 3.1 3.2 Reuters, "Clinton has 'serious concerns' about Aetna-Humana, Anthem-Cigna mergers," October 21, 2015
- ↑ 4.0 4.1 4.2 4.3 4.4 4.5 4.6 4.7 Cigna, "Cigna milestones," accessed March 28, 2016
- ↑ Cigna, "Facts about Cigna," accessed March 29, 2016
- ↑ Center for Responsive Politics, "Cigna Corp," accessed March 29, 2016
- ↑ 7.0 7.1 7.2 Cigna, "2015 political contributions and lobbying activity report," accessed March 29, 2016
- ↑ Center for Responsive Politics, "Cigna Corp PAC," accessed March 29, 2016
- ↑ Cigna, "Cigna Foundation," accessed March 29, 2016
- ↑ 10.0 10.1 Reuters, "Cigna says signed up 75,000-100,000 for Obamacare," April 1, 2014
- ↑ Health News Florida, "Cigna Pulls Out Of FL Marketplace, Cites Abuse," October 15, 2015
- ↑ Insurance and Financial Advisor, "Cigna CEO on ‘perception’ of Obamacare affordability, ending some broker commissions," December 8, 2015
- ↑ Cigna, "Cigna local market solutions," accessed March 29, 2016
- ↑ Forbes, "Anthem, Cigna shareholders approve merger as antitrust hurdles await," December 3, 2015
- ↑ 15.0 15.1 Politico, "DOJ files lawsuits to block mergers of insurance giants," July 21, 2016
- ↑ Reuters, "U.S. regulators sue to block Anthem-Cigna, Aetna-Humana insurer mergers," July 21, 2016
- ↑ Politico, "Judge rejects Anthem's $54 billion takeover of Cigna," February 8, 2017
- ↑ Cigna, "Cigna executives and management team," accessed March 29, 2016
- ↑ Cigna, "Board of directors," accessed March 29, 2016
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