Health Care Segment
CIGNA HealthCare
Disability and Life Segment
CIGNA Group Insurance
Retirement Segment
CIGNA Retirement & Investment Services
International Segment
CIGNA International
Run-off Reinsurance Segment
CIGNA Reinsurance
Other Operations consists of:
deferred gains recognized from the 1998 sale of the individual life insurance
and annuity business;
corporate life insurance on which policy loans are outstanding;
settlement annuity business; and
certain investment management services.
CIGNA’s Health Care operations offer a wide range of managed care and indemnity
products and services primarily to meet the needs of employers of all sizes
and their employees and dependents. These operations also provide disability
and life insurance products which were historically sold in connection with
certain experience-rated medical accounts and continue to be managed by CIGNA’s
health care business. These products and services are provided by subsidiaries
of CIGNA Corporation.
Products and Services
CIGNA’s Health Care operations provide a wide array of products and services
to satisfy the benefit needs of employers and their employees and dependents,
as described below:
managed care products and services, such as:
medical health maintenance organizations (“HMOs”),
point-of-service (“POS”) medical plans,
managed dental programs,
managed behavioral health care services and employee assistance programs,
medical cost and utilization management, and
managed pharmacy programs and pharmaceutical fulfillment services; and
indemnity products and services, such as:
medical and dental preferred provider organizations (“PPOs”),
traditional medical and dental indemnity,
indemnity pharmacy programs, and
disability and life insurance products historically sold in connection with
certain experience-rated medical accounts.
Managed Care Products and Services
Managed care products provide for an effective, efficient use of health care
services by coordinating utilization of care and controlling unit costs through
provider contracts. Managed care products and services include those described
below.
Medical Health Maintenance Organizations. HMOs generally offer the most cost-efficient
form of health care coverage. Members typically choose a primary care physician
from CIGNA’s provider network. Primary care physicians are responsible for the
member’s primary medical and preventive care. In some cases, a member must receive
a referral from his or her primary care physician to receive services from a
participating specialist or medical facility that are covered under the member’s
plan.
CIGNA also provides an open access HMO product. This product offers the member
an HMO network of providers without the requirement of a referral from the primary
care physician in order to have services provided by a participating specialist
or medical facility covered under the member’s plan.
CIGNA delivers its medical HMOs principally through individual practice association
(“IPA”) models.
Under an IPA model, the HMO contracts with independent physicians and hospitals
to provide services to members. IPA models typically cover wide geographic areas
and have low fixed costs. They rely on cost-effective contracts with providers
and appropriate medical cost and utilization management to deliver quality medical
care at an appropriate cost. CIGNA has one medical HMO that offers the consumer
both an IPA model and a staff model. In a staff model, physicians and certain
other providers are employees of the medical HMO.
D. Disability and Life
CIGNA’s Group Insurance operations provide the following insurance products
and their related services: long- and short-term disability insurance, group
life insurance, and accident and specialty insurance. These products and services
are provided by subsidiaries of CIGNA Corporation.
Life Insurance
Group life insurance products include group term life, group universal life
and group variable universal life insurance. Group term life insurance may be
employer-paid basic life insurance or employee-paid supplemental life insurance.
E. Retirement
CIGNA’s Retirement operations provide investment products and professional
services to sponsors of qualified and non-qualified pension, profit sharing
and retirement savings plans. This segment’s businesses also offer corporate
life insurance, principally to Fortune 1000 companies, and operate a retail
broker-dealer operation and a federal savings bank. Except for certain investment
management services provided by unaffiliated entities, as described below, the
products and services related to this segment are provided by CIGNA subsidiaries.
CIGNA markets a Total Retirement Services® offering, which integrates tax qualified
and non-qualified defined contribution and defined benefit products and services.
Non-qualified plans are primarily used to provide supplemental retirement benefits
to highly compensated employees in addition to the benefits offered under the
qualified plan.
Corporate Life Insurance
Corporate life insurance products are permanent life insurance contracts sold
to corporations to provide coverage on the lives of certain of their employees.
Permanent life insurance, which is non-participating, provides coverage that
when adequately funded does not expire after a term of years and builds a cash
value that may equal the full policy amount if the insured is alive on the policy
maturity date. Non-participating insurance does not pay dividends, but deviations
from assumed experience may be reflected in future policy values.
F. International
CIGNA’s International operations (“International”) provide various coverages,
products and services in selected markets outside the United States, principally
in Asia (mainly South Korea, Hong Kong and Taiwan) and Europe (mainly the United
Kingdom and Spain). In addition, CIGNA provides group benefits products in numerous
markets for expatriate employees of multinational companies.
G. Run-off Reinsurance
Until June of 2000, CIGNA offered reinsurance coverage for part or all of the
risks written by other insurance companies under life and annuity policies (both
group and individual); accident policies (personal accident, catastrophe and
workers’ compensation coverages); and health policies. These products were sold
principally in North America and Europe through a small sales force and through
intermediaries.