Wednesday, December 20, 2006

Insurance...For Who?

Which of A, B or C does not belong;

A) Cigna Corp. on Wednesday reported a 15% increase in third-quarter profit, buoyed by a strong showing in its health insurance business as membership rolls increased and the company better managed its medical costs.

In the quarter, net income rose to $298 million, or $2.75 a share, from $259 million, or $2, during the same period last year. (Source: Los Angeles Times)

B) ...For instance, the CEO of Philadelphia-based Cigna Corp., H. Edward Hanway ranked in the No. 3 spot even as stockholders of the health insurer saw their share prices decline 10 percent. Hanway netted $26.1 million in total compensation, most of which came from $22 million in long-term incentives. (Source: Philadelphia Business Journal)

C) Cigna has just informed us that they are revising all plans, groups, rates and enrollments effective January 1, 2007. The revisions and recalculations have resulted in enormous rate increases for some of our Cigna groups. California rate increases average 82%, with some increases as high as 250% (from a memo received from my plan administrator October 2006. For the record, my rates jump from $292/month to $700/month)


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