Cigna

Cigna. Cigna is a global health services organization with its corporate headquarters in Bloomfield, Connecticut. The company provides a wide range of insurance products and related services, including medical insurance, dental insurance, disability insurance, and life insurance, alongside operating one of the largest pharmacy benefit management networks in the United States. Its operations span across multiple continents, serving individuals, employers, and government programs, and it is a prominent constituent of the S&P 500 and Fortune 500 lists.

History

The modern Cigna corporation was formed in 1982 through the merger of the Insurance Company of North America, founded in Philadelphia in 1792, and the Connecticut General Life Insurance Company, established in Hartford, Connecticut in 1865. This union created a formidable entity in the American insurance industry. Significant expansion occurred in 1984 with the acquisition of the Equitable Life Assurance Society's group health business. A major transformation took place in the 1990s when the company sold its property and casualty insurance operations to focus exclusively on healthcare and related benefits. The company further solidified its position in the managed care sector through the 2012 acquisition of HealthSpring, a major Medicare Advantage provider. Its most transformative deal was the 2018 combination with Express Scripts, a leading pharmacy benefit manager, creating an integrated health services giant. In 2023, Cigna announced a planned merger with Humana, though the companies later terminated the agreement.

Operations and services

Cigna operates through two primary business segments: Cigna Healthcare and Evernorth Health Services. The Cigna Healthcare segment offers a comprehensive suite of commercial health insurance plans for employers, as well as government-sponsored programs like Medicare Advantage and Medicaid. Internationally, it provides private medical insurance primarily through its Cigna Global Health Benefits division, serving expatriates and global organizations in regions like Europe, Asia, and the Middle East. The Evernorth segment encompasses its vast pharmacy benefit management operations, including the Express Scripts pharmacy, along with specialized services in behavioral health, home delivery pharmacy, and cost containment solutions. Additional offerings include dental coverage through Cigna Dental, vision care plans, and various supplemental health products.

Financial performance

As a publicly traded entity on the New York Stock Exchange under the ticker symbol CI, Cigna consistently ranks among the largest revenue-generating companies in the world, regularly appearing on the Fortune 500 list. Its financial results are heavily influenced by premiums from its health insurance plans and revenues from its pharmacy benefit management services. Key financial metrics, such as medical cost ratio and administrative expense ratio, are closely watched by analysts from firms like J.P. Morgan and Goldman Sachs to gauge profitability and operational efficiency within the highly regulated U.S. healthcare market. The integration of Express Scripts significantly expanded its revenue base, making it a top player in the PBM industry.

Corporate affairs

The company is led by Chairman and Chief Executive Officer David Cordani, with its board of directors including notable figures from various sectors. Its corporate headquarters are situated in Bloomfield, Connecticut, with major operational hubs across the United States, including locations in Philadelphia and St. Louis, Missouri. Cigna engages in extensive political lobbying activities, often through trade associations like America's Health Insurance Plans, focusing on legislation affecting the Affordable Care Act and drug pricing. The company also runs the Cigna Foundation, which focuses on health equity and community health initiatives, and has made public commitments to environmental, social, and corporate governance goals.

Controversies and legal issues

Cigna has faced numerous legal challenges and regulatory scrutiny. It has been subject to investigations by state regulators, the U.S. Department of Justice, and the Securities and Exchange Commission over various business practices. The company has settled several high-profile lawsuits, including allegations of violating the False Claims Act by submitting inaccurate diagnosis data to the Centers for Medicare & Medicaid Services to receive higher Medicare Advantage payments. Its pharmacy benefit management practices, particularly related to drug pricing and formulary management, have been criticized by lawmakers and patient advocacy groups, leading to congressional hearings. Furthermore, the company has faced class-action lawsuits from providers and patients related to claims processing and coverage denial allegations. Category:Health insurance companies of the United States Category:Companies listed on the New York Stock Exchange Category:Companies based in Connecticut