Signa Group

Cigna is a global health services company that provides insurance products and related services with the goal of improving the health, well-being and peace of mind of its customers. Headquartered in Bloomfield, Connecticut, Cigna offers health, pharmacy, dental, disability, life and accident insurance. The company serves millions of customers worldwide, including individuals, employers, healthcare professionals, and government organizations.

Cigna, its history, services, business model and more:

Table of Contents

1.     Company Overview.. 1

2.     History and development. 1

3.     Core Services and Products. 1

·       Health Insurance Plans: 2

·       Pharmacy Services: 2

·       Behavioral Health: 2

·       Dental, Vision, and Supplemental Insurance: 2

·       Wellness and Preventive Care: 2

·       6. Virtual Care and Telemedicine: 2

4. Business Model 2

5. Key Actions. 3

6. Competitors. 3

7. Challenges and Criticism.. 4

8. Recent Developments. 4

9. Corporate Responsibility. 4

The Result. 4

1. Company Overview

• Full name: Cigna Corporation
• Headquarters: Bloomfield, Connecticut, US
• CEO: David Cordani (until 2024)
• Founded: 1982 (merger of INA Corporation and Connecticut General Corporation)
• Industry: Health Insurance, Health Services
• Revenue: Over $180 billion (by 2023)
• Employees: About 70,000 worldwide

Cigna operates primarily in the healthcare sector, but its services extend beyond health insurance to include wellness programs, behavioral health services, and Comprehensive health solutions aimed at Preventative care, chronic condition management, and cost containment for employers and individuals.

2. History and development

• Founder's Origins:
• Cigna's roots go back to 1792 with the founding of the Insurance Company of North America (INA), the first marine insurance company in the United States. In 1982, INA merged with Connecticut General Life Insurance Company ( CG). Kar Signa was formed.
• Early Growth: Initially, Cigna focused on insurance services, including property, casualty, and life insurance. Over time, it shifted its focus to health insurance and healthcare services.
• Global Expansion: Cigna has expanded its operations globally, with services available in more than 30 countries, including major markets in North America, Europe, Asia, and Latin America.

Express Scripts Acquisition (2018): One of the company's most significant acquisitions was the $67 billion purchase of pharmacy benefit management (PBM) company Express Scripts. It expanded Cigna's capabilities in managing prescription drug benefits and pharmaceutical services.

3. Core Services and Products

Cigna provides a wide variety of health-related services, primarily focused on health insurance and care management. The company divides its services into several major categories:

· Health Insurance Plans:

• • Individual and Family Plans: Cigna offers a variety of health insurance plans for individuals and families in the U.S. through employer-sponsored programs and individual health exchanges (the Marketplace).
  • Medicare and Medicaid: The company offers Medicare Advantage, Medicare Supplement (Medigap), and Medicare Part D plans. It also offers Medicaid services in select states.
  • Employer-Sponsored Plans: Cigna offers group health insurance plans for businesses of all sizes, including self-funded and fully insured options.
  • Global Health Plans: Cigna's international division offers global health plans for expats and multinational corporations, ensuring coverage for employees working abroad.

· Pharmacy Services:

• • Through its Express Scripts subsidiary, Cigna offers pharmacy benefit management (PBM) services, including prescription drug coverage, mail order pharmacy services, and specialty pharmacy solutions. Express Scripts manages prescription plans for insurers, employers, and government programs, focusing on cost containment and access.

· Behavioral Health:

• • Cigna provides mental health and wellness services, including access to therapists, counselors, and support for conditions such as depression, anxiety, substance abuse, and stress management. The company emphasizes the integration of mental and physical health care through its holistic health services.

· Dental, Vision, and Supplemental Insurance:

• • In addition to health insurance, Cigna offers dental and vision plans, as well as supplemental insurance products such as critical illness insurance, accident insurance, and disability insurance.

· Wellness and Preventive Care:

• • Cigna invests heavily in wellness programs that encourage healthy behaviors, preventive care and early intervention to reduce healthcare costs. Programs include weight management, smoking cessation, stress management, and chronic condition management.

· 6. Virtual Care and Telemedicine:

• • Cigna promotes telehealth services through its partnerships with platforms such as MDLIVE. It allows members to remotely consult with healthcare providers for non-emergency medical issues, mental health services, and prescription refills.

4. Business Model

Cigna operates primarily under business-to-business (B2B) and business-to-consumer (B2C) models. Major revenue sources include:

• Employer-provided insurance:
  • Cigna's largest source of revenue comes from group health plans sold to employers. It offers self-funded plans where employers bear the cost of claims, while Cigna handles the administrative aspects of the insurance.
• Medicare/Medicaid:
  • Cigna is a major player in the Medicare Advantage and Part D prescription drug markets. Due to the growing U.S. population, this segment of the business has grown significantly.
• Individual Market:
  • Through the Affordable Care Act (ACA) marketplace, Cigna offers individual health insurance plans, although its share of these markets varies by region.
• Pharmacy Benefit Management:
  • Cigna's acquisition of Express Scripts allowed it to control a large portion of the prescription drug supply chain. Express Scripts manages prescription plans, negotiates drug prices with manufacturers, and ensures access to medications for its members.

5. Key Actions

Cigna has taken several key initiatives to drive innovation and improve healthcare outcomes for its members:

• Value-Based Care:
  • Cigna promotes value-based care contracts with healthcare providers, focusing on quality outcomes rather than volume of services. This includes working with accountable care organizations (ACOs) and offering financial incentives to providers to improve patient health outcomes.
• Digital Health:
  • Through its Cigna Ventures division, the company invests in digital health startups and technologies that aim to expand access to healthcare, improve data analytics, and create innovative health tools. Cigna also leverages data analytics and artificial intelligence to deliver more personalized care to its members.
• Health Equity:
  • Cigna focuses on addressing the social determinants of health, including access to health care in underserved communities. It has implemented strategies to reduce health disparities and improve care for low-income and underserved groups.
• Chronic Disease Management:
  • Cigna offers targeted programs to manage chronic conditions such as diabetes, heart disease, and high blood pressure. The goal of these programs is to reduce health care costs by preventing complications and helping patients better manage their conditions.

6. Competitors

Cigna operates in a highly competitive market with other major health insurance providers. Key competitors include:

• UnitedHealthcare – the largest health insurer in the United States.
• Antara (now Alliance Health) – a major provider of Blue Cross Blue Shield plans.
• Aetna – a major health insurance company owned by CVS Health.
• Humana – a major player in the individual insurance and Medicare Advantage markets.

7. Challenges and Criticism

Like many large health insurance companies, Cigna has faced criticism and challenges in several areas:

• High Premiums and Out-of-Pocket Costs:
  • Some consumers have expressed concern about rising premiums, deductibles, and out-of-pocket costs, which can create barriers to accessing care, particularly for low-income individuals.
• Disputes over Pharmacy Benefit Management (PBM):
  • The PBM industry, including Cigna's Express Scripts, has faced scrutiny for its role in driving up prescription drug prices. PBMs negotiate prices with drug manufacturers but are often criticized for their lack of transparency on pricing and reimbursement.
• Regulatory Challenges:
  • Cigna is subject to regulatory oversight by federal and state governments, particularly with respect to Medicare and Medicaid services. Changes in regulations related to the ACA, Medicare, and other health programs could significantly impact Cigna's business operations.

8. Recent Developments

• Cigna is expanding its services beyond the U.S., focusing on its international health plans for expatriates and global employers.
• The company continues to adapt to changes in U.S. health care laws and regulations, particularly with the expansion of Medicare and the ACA market dynamics.
• Cigna's focus on virtual care and mental health services has increased in response to the COVID-19 pandemic, as more consumers seek telemedicine solutions and health support.

9. Corporate Responsibility

Cigna is committed to corporate social responsibility through initiatives to improve community health, sustainability, and ethical business practices. The company supports a variety of philanthropic causes, including efforts to combat the opioid crisis, promote mental health awareness, and improve access to healthcare in underserved populations.

The Result

Cigna is a major player in the global healthcare market, offering a broad range of health insurance and health-related services. With a focus on innovation, digital health, and value-based care, the company continues to adapt to the changing healthcare landscape, offering services that benefit individuals, employers, and healthcare providers. In the face of challenges related to rising healthcare costs and regulatory pressures, Cigna is committed to providing comprehensive and affordable healthcare solutions.