[February 13, 2013]

Cigna: Consumer-Driven Health Plans Flourish Despite Difficult Economy, Increasing Regulations

In the face of another year of economic volatility and legislative and regulatory change, Cigna's consumer-driven health plan (CDHP) participation grew by 26 percent during 2012, resulting in one-in-five Cigna customers now participating in a Health Savings Account (HSA) or Health Reimbursement Account (HRA).

"The growth of consumer-driven health plans continues because they help customers reduce their health risks and improve the quality and efficiency of their care, which result in lowering their total medical costs," said Cigna President and Chief Executive, David M. Cordani. "The evidence in our Seventh Annual Cigna Choice Fund Experience Study is clear, consistent and compelling: our CDHP customers are more engaged with their health and health spending, they spend less to receive the same levels of recommended care, and are more satisfied with their health care experience."

Released today, the Seventh Annual Cigna Choice Fund Experience Study compares the actual claims experience of more than 2.5 million Cigna customers who are enrolled in either a CDHP, a traditional PPO or HMO health plan. The annual study provides empirical evidence that properly designed CDHP plans improve total medical cost without compromising care or shifting costs from the employer to employees.

According to the study, when compared to customers in traditional PPO and HMO plans, those in a CDHP:

• Lowered their health risks: Cigna CDHP customers lowered their risk of developing or worsening a chronic condition. According to the study, when employers fully transitioned to offering only a CDHP option, individuals improved their health risk profile by 12 percent in the first year compared to customers in a traditional plan.
• Reduced total medical costs: Cigna CDHP medical cost trend was 13 percent lower than traditional plans during the first year: costs were 20 percent lower for HSA customers and 11 percent lower for HRA participants. Cost reductions were achieved without employers shifting out-of-pocket health expenses to their employees. Notably 75 percent of HSA customers contribute more to their accounts than they spend.
• More engaged in health improvement: Cigna CDHP customers were twice as likely to complete a health risk assessment and CDHP customers with a chronic illness are up to 25 percent more likely to participate in a disease management program than those enrolled in a traditional plan.
• Were more likely to compare cost and quality: Cigna CDHP customers were 59% more likely to use the directory to access cost and procedure information to help them review potential medical costs.
• Were more savvy consumers of health care: Customers with Cigna Choice Fund plans and Cigna pharmacy bnefits were more likely to choose generic medications compared to those in a traditional plan. In addition, CDHP customers used the emergency room at a six percent lower rate than individuals enrolled in HMO and PPO plans.
• Received higher levels of care: Cigna CDHP customers had consistent or higher compliance with over 300 evidenced-based medical best practices than their counterparts in traditional plans. Cigna CDHP customers also sought preventive care, such as annual office visits and mammograms, more frequently than customers enrolled in a traditional plan.

"While we just completed our first year under the new plan, we've seen many people taking steps to monitor and improve their health, including receiving age- and gender-appropriate preventive care screenings at rates above industry averages, increased visits to a primary care physician, good usage of Wellness Screenings where 14% of those screened learned about a health risk for the first time, and increased usage of generic medications," Roehrig said. "We feel providing appropriate access to quality health care providers, information regarding the quality and cost of those various providers, and appropriate health and condition management coaching programs are important components to our success. Incentives and communications are used to encourage our employees to better understand their options and make decisions that are right for them and their families."

Cigna continues to improve its CDHP offering, including a new, free myCigna Mobile App for customers to help manage their health plan benefits to:

• find a doctor using Cigna's award-winning physician directory,
• access ID cards in one convenient location,
• view and manage account balances and deductibles,
• look up medical, dental and pharmacy claims,
• research and compare drug prices at 60,000 pharmacies

The new myCigna Mobile App is available to all Cigna U.S. health plan customers with smart phone or tablet mobile devices for download from the App Store^SM or Google Play.

About Cigna

Cigna Corporation (NYSE: CI) is a global health service company dedicated to helping people improve their health, well-being and sense of security. All products and services are provided exclusively through operating subsidiaries of Cigna Corporation, including Connecticut General Life Insurance Company, Cigna Health and Life Insurance Company, Life Insurance Company of North America, Cigna Life Insurance Company of New York and their affiliates. Such products and services include an integrated suite of health services, such as medical, dental, behavioral health, pharmacy and vision care benefits, and other related products including group disability, life, and accident coverage. Cigna has sales capability in 30 countries and jurisdictions, with approximately 75 million customer relationships throughout the world. To learn more about Cigna®, including links to follow us on Facebook or Twitter (News - Alert), visit www.cigna.com.

About JPMorgan Chase & Co.

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.4 trillion and operations worldwide. The firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. More information is available at www.jpmorganchase.com.

About Apps

App Store is a service mark of Apple Inc. Google (News - Alert) Play is a trademark of Google Inc.

The downloading and use of these Apps is subject to the terms and conditions of the Apps and the online stores from which they are downloaded. Standard mobile phone carrier and data usage charges apply.

Actual myCigna mobile app features available may vary depending on your plan. The listing of a health care professional or facility in the mobile directories available through the myCigna mobile app does not guarantee that the services rendered by that professional or facility are covered under your specific medical plan. Check your official plan documents, or call the number listed on your ID card, for information about the services covered under your plan benefits.

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