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FORWARD LOOKING STATEMENTS• CAUTIONARY STATEMENT FOR PURPOSES OF THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995• CIGNA and its representatives may from time to time make written and oral forward-looking statements, including statements contained in press releases, in CIGNA’s filings with the Securities and Exchange
Commission, in its reports to shareholders and in meetings with analysts and investors. Forward-looking statements may contain information about financial prospects, economic conditions, trends and other uncertainties. These forward-looking statements are based on management’s beliefs and assumptions and on information available to management at the time the statements are or were made. Forward-looking statements include but are not limited to the information concerning possible or assumed future business strategies, financing plans, competitive position, potential growth opportunities, potential operating performance improvements, trends, and in particular, CIGNA's cost reduction programs and activities, litigation and other legal matters, operational improvement in the health care operations, and the outlook for CIGNA's full year 2006 and 2007 results and beyond. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words “believe”, “expect”, “plan”, “intend”, “anticipate”, “estimate”, “predict”, “potential”, “may”, “should”, or similar expressions.
• You should not place undue reliance on these forward-looking statements. CIGNA cautions that actual results could differ materially from those that management expects, depending on the outcome of certain factors. Some factors that could cause actual results to differ materially from the forward-looking statements include:
– 1) increased medical costs that are higher than anticipated in establishing premium rates in CIGNA’s health care operations, including increased use and costs of medical services;
– 2) increased medical, administrative, technology or other costs resulting from new legislative and regulatory requirements imposed on CIGNA’s employee benefits businesses;
– 3) challenges and risks associated with implementing the improvement initiatives in the health care operations, the organizational realignment and the reduction of overall CIGNA and health care cost structure, including that operational efficiencies and medical cost benefits do not emerge as expected and that medical membership does not grow as expected;
– 4) risks associated with the amount and timing of gain recognition on the sale of CIGNA's retirement benefits business;– 5) risks associated with pending and potential state and federal class action lawsuits, purported securities class action lawsuits, disputes regarding reinsurance
arrangements, other litigation and regulatory actions challenging CIGNA’s businesses and the outcome of pending government proceedings and federal tax audits;– 6) heightened competition, particularly price competition, which could reduce product margins and constrain growth in CIGNA’s businesses, primarily the health care
business;– 7) significant changes in interest rates; – 8) downgrades in the financial strength ratings of CIGNA’s insurance subsidiaries, which could, among other things, adversely affect new sales and retention of current
business;– 9) limitations on the ability of CIGNA's insurance subsidiaries to dividend capital to the parent company as a result of downgrades in the subsidiaries’ financial strength
ratings, changes in statutory reserve or capital requirements or other financial constraints;– 10) inability of the program adopted by CIGNA to substantially reduce equity market risks for reinsurance contracts that guarantee minimum death benefits under certain
variable annuities (including possible market difficulties in entering into appropriate futures contracts and in matching such contracts to the underlying equity risk); – 11) adjustments to the reserve assumptions (including lapse, partial surrender, mortality, interest rates and volatility) used in estimating CIGNA's liabilities for reinsurance
contracts that guarantee minimum death benefits under certain variable annuities; – 12) adjustments to the assumptions (including annuity election rates and reinsurance recoverables) used in estimating CIGNA’s assets and liabilities for reinsurance
contracts that guarantee minimum income benefits under certain variable annuities;– 13) significant stock market declines, which could, among other things, result in increased pension expenses in CIGNA’s pension plan in future periods and the recognition
of additional pension obligations; – 14) unfavorable claims experience related to workers’ compensation and personal accident exposures of the run-off reinsurance business, including losses attributable to
the inability to recover claims from retrocessionaires;– 15) significant deterioration in economic conditions, which could have an adverse effect on CIGNA’s operations and investments; – 16) changes in federal laws, such as amendments to income tax laws, which could affect the taxation of employer provided benefits, and pension legislation, which could
increase pension cost;– 17) potential public health epidemics and bio-terrorist activity, which could, among other things, cause our covered medical and disability expenses, pharmacy costs and
mortality experience to rise significantly, and cause operational disruption, depending on the severity of the event and number of individuals affected;– 19) risks associated with security or interruption of information systems, which could among other things cause operational disruption– 18) challenges and risks associated with the successful management of CIGNA’s outsourcing projects or key vendors, including the agreement with IBM for provision of
technology infrastructure and related services; and– 20) risk factors detailed in CIGNA's Form 10-Q for the quarter ended September 30, 2006, and Form 10-K for the year ended December 31, 2005, including the Cautionary
Statement in Management’s Discussion and Analysis.• This list of important factors is not intended to be exhaustive. Other sections of the annual report on Form 10-K and our quarterly reports on Form 10-Q, including the “Risk Factors” section and other documents
filed with the Securities and Exchange Commission include both expanded discussion of these factors and additional risk factors and uncertainties that could preclude CIGNA from realizing the forward-looking statements. CIGNA does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
HealthCare Consumerism: General Trends Across Employer Segments
Growing acceptance
Health advocacy
Effective communications
Business fundamentals
Growing Understanding / Acceptance of Consumerism• Continuing trend: More
and more employers understand the promise of consumerism
• Expanding across all segments – but at varying paces
Growing Awareness of Importance of Health Advocacy and Wellness
• More employers recognize the value of keeping employees healthy
• Expect their health and wellness companies to not just administer benefits . . . but also to proactively improve the health of their workforce
LOWER . . . HIGHER . . .
COSTS
MEDICAL UTILIZATION
ABSENTEE RATES
PRODUCTIVITY
EMPLOYEEMORALE
Continued Importance of the Fundamentals• Cost: Improve / reduce
health care costs
• Access: Access to broad, quality network of health care providers
• Service: High-quality, consistent service
Unique Employer Trends:National Account Segment
Consumerism Profile• More sophisticated and willing to try
new things• More willing to do full replacements• Offer employees more options• More aggressive consumer
engagement• Second-year employers and
employees “get it”
Multi-site
employers
with more
than 5,000
employees
Unique Employer Trends:Middle Market Segment
Consumerism Profile• Growing interest in CDHPs and in the
value of consumerism• Buying habits governed by broker
community• More employers asking for health
advocacy and wellness programs• Remains very price- and cost-sensitive
Multi-site
employers
with
201 – 5,000
employees;
single-site
employers
with 201+
employees
Unique Employer Trends:Small Business Segment
Consumerism Profile• Remains very price- and cost-sensitive• Use CDHPs primarily to make health
care more affordable for themselves• Tend toward full replacements• Significant effort to educate brokers on
value of consumerism
Employers
with 51-200
employees
Unique Employer Trends:Government Segment
Consumerism Profile• Generally slow to accept consumerism• Continued interest in mobilizing people
to become engaged, efficient consumers – but not necessarily through CDHPs
• Government regulations may stimulate further adoption
Government
entities
(federal,
state, local /
town)
Unique Employer Trends:Taft-Hartley Segment
Consumerism Profile• Increasing desire to improve union
members’ health• Requires simple, easy-to-use benefits
and programs• Emphasis on hands-on engagement
and education
Union-
based
entities
CIGNA’s Competitive Advantages • Industry-leading
consumerism and health advocacy capabilities
• Products and service innovation / integration
• Information management and transparency
• Local market focus backed by national capabilities
• Customer intimacy and consultation
• Delivering on the fundamentals
The Role of Servicein the EvolvingConsumerismMarketplace
Scott StorrerExecutive Vice President
Service Operations & Information Technology
CIGNA Corporation
● ● ● ● ● ●
Service and Consumerism at CIGNA• CIGNA’s core service
capabilities are strong
• Extending traditional service model to more effectively integrate service and clinical capabilities
• Developing innovative service model of the future to drive advanced capabilities to support consumerism, health advocacy, and the strategic use of information
CIGNA Very Competitive on the Service Fundamentals• Service results exceeding
targets
• J.D. Power and Associates certification
– HealthCare member services call centers certified for providing “An Outstanding Customer Service Experience”
• Six Sigma continuous improvement
• Customer-centric quality programs
For J.D. Power and Associates Certified Call Center ProgramSM information, visit www.jdpower.com.
Culture of Continuous Improvement
ContinuousOperational
Improvement
Quality Improvements
Productivity GainsSelf-Service
Business Process Outsourcing
Technology Enhancements
Driving real operational improvements and financial benefits.
ResourceAlignment
Extending theTraditional Service Model
• Call customer service for questions or complaints (reactionary)
• Lack of understanding of benefits and services
• Challenges around easy access to information
• Difficult to understand health care “big picture”
• Turn questions and complaints into health coaching opportunities
• Proactive and higher touch
• Health advisors
• Information is easy to find and easy to use
• Member understands health care “big picture”
• Tighter integration between service and clinical teams
OLD WORLD . . . NEW WORLD . . .
Extending the Traditional Service Model
• Bridging the gap between traditional service and health advocacy opportunities
• Dedicated CIGNA Choice FundSM service team
• Service strategy placing greater emphasis on automation, self-service, and electronic transactions
SERVICE
HEALTHADVOCACY
COACHABLEMOMENT
Creating the Consumer-Centric Service Model of Tomorrow• Integrating service, health
advocacy, and technology• Innovation lab in Bristol (CT)
– Consumer-centric service model “in action”
– Integration of clinical and service professionals
– Customer-focused work environment
• IBM strategic alliance– Building technology
infrastructure and CRM to deliver on breakout consumer-centric service model
Final Thoughts• Service must be high-touch
and consultative
• Service environment must provide full view of consumer
• New technology is needed to facilitate the union of consumerism, health advocacy, and information and “make it all work”
• A good service experience can be the first step to health improvement
Engaging the Health CareConsumer
Kenneth SperlingSenior Vice President
National Account SegmentCIGNA HealthCare
● ● ● ● ● ●
Evaluating our Capabilities
Structure Process Outcome
“Do you have…?” “Do you do…?” “What happened?”
Answering the Critics• “Consumer-driven health care doesn’t save
any money.”• “It’s just a cost shift.”• “Sick people will be much worse off.”• “If people have to pay for their medications,
they won’t take them.”• “People won’t seek the care they need.”• “No one will use the decision tools.”
CIGNA’s Study Results
Traditional Choice FundMonth 1 12 24
Traditional TraditionalMonth 1 12 24
- compared to -
44 groups
38,211 members
231,680 members
20052004
• Based on discounted charges (before plan design cost sharing)• Excludes outliers (claims > $50,000)• Standardized for differences in claim mix• Claims, clinical quality indicators, and survey data
StudyStudyGroupGroup
ControlControlGroupGroup
Measures the impact of consumerism married with strong health advocacy and actionable information
CIGNA Choice Fund®
vs. Traditional Plan
-16%--16%16%
-29%
-21%
-10%
-11%
-19%
-19%
Claim LevelService TypeInpatient
Outpatient
Professional
Under $1,000
$1,000 - $8,000
Over $8,000
Significant differences in trend across all service types
Behavior change across claim levels—even when the benefit plan had no cost-sharing features
Significant differences in trend across all service types
Behavior change across claim levels—even when the benefit plan had no cost-sharing features
“Consumer-driven health care doesn’t save any money.”
Member Out-of-Pocket Cost
$117 $49
$839 $781
$2,508 $2,536
$591$535
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
Under $1,000 $1,000 - $8,000 Over $8,000 Total
2004 Traditional Plan2005 CIGNA Choice Fund
-$68
+$28
-$58-$56
Choice Fund drove much lower out-of-pocket cost for low utilizers and helped maintain out-of-pocket cost for higher utilizers
Conservative estimate—Does not include reduced payroll contributions or account rollovers (30 – 50% of fund)
Choice Fund drove much lower out-of-pocket cost for low utilizers and helped maintain out-of-pocket cost for higher utilizers
Conservative estimate—Does not include reduced payroll contributions or account rollovers (30 – 50% of fund)
“It’s just a cost shift.”
“Sick people will be much worse off.”
-2.9%
-8.4%
1.8%
-10%
-5%
0%
5%
10%Chg '05 vs. '04
Chronic care Episodic care
Healthy/ Low Cost
Reduced trend for people with chronic or episodic illness drove most of the Choice Fund cost savings
Comparable savings from those who stayed in the same category as well as moved categories from year to year
Reduced trend for people with chronic or episodic illness drove most of the Choice Fund cost savings
Comparable savings from those who stayed in the same category as well as moved categories from year to year
“If people have to pay for their medications, they won’t take them.”
Greater compliance with chronic medications
More discerning in use of medications with OTC alternatives
Greater compliance with chronic medications
More discerning in use of medications with OTC alternatives
5%
-9%
-8%
2%
22%
-15%
-20% -10% 0% 10% 20% 30%
Days Supply Change vs. Prior Year
Pain
Gastrointestinal
Anti-Infectives
Cardiovascular
Respiratory
Medication Days SupplySelect Drug Classes
Antihistamines -13%Asthma-related + 21%
Anti-ulcer - 18%
Migraine - 29%
Penicillin - 8%
ACE/ARB + 10%
Diabetes Hypoglycemic +33%
“People won’t seek the care they need.”
Preventive care visits increased year over yearHigher in Choice Fund than the traditional plan
Preventive care visits increased year over yearHigher in Choice Fund than the traditional plan
368
397
352 354
320
330
340
350
360
370
380
390
400
410
Choice Fund2004
Choice Fund2005
Traditional2004
Traditional2005
Preventive Care Visits CIGNA Choice Fund® vs. Traditional Plans
Prev
entiv
e C
are
Visi
tsPe
r 100
0 M
embe
rs +8.0%
+0.6%
0% 20% 40% 60% 80% 100%
Asthma Inhaler/Steriod
Diabetic HbA1c
Diabetic Retinopathy
Beta Blocker Post MI
LDL Cholesterol Screen
ACE inhibitor forHypertensives
Mammography
CIGNA Choice Fund Traditional Plan
CIGNA Choice Fund members had same or higher compliance on approx. 96% of measures.
CIGNA Choice Fund members had same or higher compliance on approx. 96% of measures.
“No one will use the decision tools.”Would Use Cost and Quality Information to...
(Percent Agreement)
45%
43%
51%
51%
52%
58%
63%
66%
69%
76%
0% 20% 40% 60% 80%
Compare costs for lab tests
Select a doctor for simple health services,like office visits
Select a facility for high-tech radiologyprocedures, like an MRI
Choose where to have an outpatientsurgery, like minor surgery
Select a hospital for an inpatient procedure,like heart surgery
Cost Quality
Members report a willingness to use both quality and cost information to select a provider
Background
Employer Case Study
• 28,000 eligible non-union employees
– Older population– Average tenure 10 to 15 years
• Health care costs significantly impacting margins
• Culture change initiative– Healthier workforce– Enhanced quality of life– Increased productivity– Reduce unnecessary medical
costs
• CIGNA Choice Fund eff. 1/1/2006– Option basis
• Choice Fund Design Strategy– Two HRA options– Contribution advantaged– 100% preventive care coverage
• Health Management Programs– Lifestyle Management– Health Advisor– Disease Management
• Early and frequent communication and engagement
Strategy
-0.4%
15.4%
-5%
0%
5%
10%
15%
20%
CIGNA Choice FundTraditional Plan
Year-over-Year Trend*2Q 2005 vs. 2Q 2006
*Excludes outliers; CIGNA population only
Combined Trend1.5%
79% enrollment in CIGNA Choice Fund®
plans, virtually eliminating annual trend
-37.0%
-1.1%
11.3%
-3.7%
-40%
-32%
-24%
-16%
-8%
0%
8%
16%
Utilization Change2006 vs. 2005
Service mix is less invasive, less intensive, and less costly to both
employer and employee
Inpatient Outpatient
Professional
Other
Lower inpatient admissions and length of stayLower outpatient surgery utilizationFewer emergency room visitsMore physician visits
Lower inpatient admissions and length of stayLower outpatient surgery utilizationFewer emergency room visitsMore physician visits
Health Advocacy Activity – January to June 2006
162Health Information Line
3,237Disease Management
602Case Management
1,540Health Advisor
Participant EngagementsProgram
4,741 Participants =
21.54% Annualized Engagement
Health Advisor Key Interventions180 Medical Director Consultations128 Benefit Counseling240 LifeStyle Management Referrals188 Behavioral Health Actions166 Disability Referrals
Conclusions• Consumerism works
– For the employer as well as the individual• Engaged consumers will make appropriate health
care decisions• Substantially lower cost can be achieved
without sacrificing clinical quality• Outcomes are optimal when
financial incentives are combinedwith strong health advocacyand actionable information
Unsustainable Health Care Trend
Medical expense is expected to increase dramatically as a percent of the Gross Domestic Product (GDP) through 2014.
• Percent of GDP spending will increase from 14% in 2002 to nearly 20% in 2015.• The percent of GDP increase for health care is faster than for all other industries.• By 2014, it is expected that the public and private share of medical expense will both
equal approximately 50% of all medical services.
Medical trend as share of GDP
Source: Centers for Medicare and Medicaid Services, Office of the Actuary, National Health Group Statistics; Health Affair and Robert Wood Foundation
0
25%
50%
75%
100%
1965 1980 1990 2000 2003 2008 2014
5%
10%
15%
20%
Share of health expenditure Share of GDP
Private Share of Health Expenditure
Public Share of Health Expenditure
Drivers of Rising Medical Costs
Key drivers of the medical cost trend include:• New medical advances including diagnostic, surgical, rehabilitative, and
pharmaceuticals.• An aging U.S. population utilizing more medical services for a longer period of time.• “Separation” of the consumer from the cost equation in private industry and
government programs.Comparable Increase in Health Premiums, Inflation & Earnings
2000- 20006
Source: U.S. Bureau of Economic Advisors, OECD
Health Premiums
Workers’ EarningsInflation
The Changing Needs of Constituents
Year
Leve
l of C
onsu
mer
Invo
lvem
ent
2000 20082004
Low
High
2006 2010
Market Needs
Employer• Continued shift from defined benefit todefined contribution plans
• Greater reliance on voluntary benefits to address health care needs of uninsuredworkers
Consumer• Increasing need for tools, technology,information to manage health needs
• More focus on preventative care, wellness and chronic care to maintain health
Providers• Need for payment support options• Data management to improve physician/ patient relationship
CIGNA recognizes and is positioned to take advantage of these market changes by supporting the needs of key constituent groups.
CIGNA’s Goals and Objectives
• Pioneering a deeper level of personalization and consumer intimacy
• Delivering integrated care for superior clinical outcomes• Providing the next generation of decision-support tools,
metrics and expert consultation
CIGNA HealthCare’s primary objective is to improve the health and well-being of our members. To accomplish this goal, CIGNA will lead the industry in engaging the consumer in managing their health. This will be attained by:
CIGNA’s Growth Strategy
CIGNA will grow by establishing market leadership in the critical differentiators that will drive growth to both existing employermarkets and to segment expansion opportunities.
Leadership and Execution of CIGNA’s Differentiators across Employer and Other Segments
Consumerism
Health Advocacy
InformaticsCost
Service
Access
2004 – 2006Preparation for Growth
2005 – 2007Marketplace Differentiation
2007 – 2010Market Leadership and
Accelerated Growth
Focus on the foundational assets
Critical Success Factors in a changing Health Care
Environment
New GrowthOpportunities
• Existing Markets• Segment Expansion
Membership and Earnings Growth
CIGNA’s Existing Market Growth
• CIGNA will continue to leverage industry leading Consumerism capabilities to continue growth in National and Middle Market Segments.
• Focus on cross-selling opportunities within segments that will improve earnings per member through Health Advocacy and Specialty products.
1. Excludes all Taft Hartley and Government/School segment members.Competitors generally count Government and Taft-Hartley business as part of National Accounts
GrowthOpportunity
12M29M34M30MProjected
2010Market
Opportunity
Total 2006 Market
Opportunity12M29M34M31M
National Accounts1
CIGNA’s Mature Markets
Middle Market Commercial
Govt/Schools
Taft-Hartley
Applying CIGNA’s Differentiators to Employer Markets
CIGNA’s leverage of fundamentals, and key differentiators have driven growth in the employer markets. CIGNA expects this growth to accelerate in 2007 and beyond.
CIGNA’s Differentiated Portfolio
Core Medical Benefits
CIGNA Choice Fund Behavioral Health
Pharmacy Benefits Wellness ProgramsConsumer Tools
Network & DiscountsCare Management
Health Coaching &Advisory Services
Core Services
Differentiators
SegmentFY '06
EstimateFY '07
EstimateNational - 6% 3%Regional 9% 6% - 8%
Total CHC 1% - 2% 4% - 6%
Segment Expansion Opportunity
• CIGNA will expand membership and earnings growth by adding or enhancing capabilities in Voluntary, Individual, Small Business, and Seniors (Medicare) Markets.
• These markets provide CIGNA with the opportunity to expand from our existing base and increase cross-selling product and service opportunities.
• CIGNA will leverage its core assets and key differentiators to expand into these segments and become a leader in engaging the consumer in their health care.
Figures for Seniors/ Medicare represent those age 65 and older.
GrowthOpportunity
48M50M19M2MProjected
2010Market
Opportunity
Total 2006 Market
Opportunity41M46M17M1M
Voluntary
Segment Expansion Opportunity
Individual SmallGroup
Seniors/Medicare
Voluntary Market Opportunity
• Interest in voluntary health care and disability insurance programs is expected to grow as employers search for ways to stretch benefit dollars.
• CIGNA supports robust Voluntary Benefit plans that can provide integrated solutions to employers.
• Voluntary capabilities improve CIGNA’s ability to penetrate traditional benefit program sales for employers.
• STAR HRG acquisition added 170K voluntary medical members while CIGNA Group Insurance organically launched group voluntary products in 2006.
Current Voluntary Market
Represents existing membership in the Voluntary market dominated by Aetna’s SRC and CIGNA’s STAR HRG. Other represents smaller or secondary carriers.
Other 61%
CIGNA 15%
Aetna 24%
• Acquire Capabilities – STAR HRG
• Expand Portfolio (e.g. Fundamental Care)
• Expand Segments (e.g. Regional Segment)
• Drive increase in penetration
Actions
Individual Market Opportunity
• Growth in individual segment will accelerate as employers reduce coverage.• Individual market today is moving rapidly to Consumer Directed Health Plans.• Individual segment is fragmented.• CIGNA’s value proposition will resonate well with the heterogeneous individual
market purchasers.
WorkingPoor Unemployed Early
RetireeEmployeeIneligible
Sole Proprietor
DependentIneligible
YoungInvincible
Segment
Size 2M 5.1M.4M 2.5M .8M6.1M .2M
Individual Insurance Purchaser
• Dedicated, experienced leadership• Secure infrastructure through acquisition or alliance• Targeted market entry strategy planned for 2007 - 2009
Actions
• Dedicated, experienced leadership
• Secure infrastructure through acquisition or alliance
• Targeted market expansion and entry strategy planned for 2007 - 2009
Small Business Market Opportunity
• Small Group (defined as employers with 2-50 employees) represents a significant growth opportunity for CIGNA today.
• Market is highly fragmented.• Risk products with good packaging.• Continue expansion of CDHP products to meet employer needs.
Graph represents combination of Individual and Small Group (under 50 lives)
Individual/Small Group (Under 50)
CIGNA 1%
Assurant 1%
Other 76%
United 8%
Humana 1%
WellPoint 10%
Aetna 3%
Actions
Seniors Market Opportunity
• Seniors represents the fastest growing segment; early retiree (50-64) and government subsidized retirees (65+).
• Retiree solutions are important to employer sponsored programs.• Range of Medicare product opportunities include HMO, FFS, Medicare Supp
and Part D drug coverage. Opportunities will likely change over time due to economic pressures on Medicare program, but government/private partnership likely to continue.
• Success requires underwriting and federal reimbursement management expertise and strong distribution and medical management capabilities.
The Graying of America
71%64%
7%
6%
6%
6%
4%
6%
3%6%
3%5%
2% 4%2% 2%2% 2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2005 2025
0 - 49 50 - 54 55 - 59 60 - 64 65 - 69 70 - 74 75 - 79 80 - 84 85+
% o
f Tot
al U
.S. P
opul
atio
n
Source: U.S. Census Bureau, Population Projections, 2004 Chapterhouse
CIGNA’s Senior Market Presence
CIGNA currently provides a spectrum of senior care services across the 50+ age group including:
• Hire Experienced Leadership• Expand Employer Sponsored solutions• Grow Part D – Both Employer and Individual• Build/Acquire MA (PFFS & HMO) and Medicare Supplement• Leverage Consumerism and Health Advocacy solutions for Under 65,
Over 65 and Retiree population
Actions
• Medicare Advantage plans to 30K members in Arizona.• Medicare Part D product to over 180K individuals nationwide.• Employer Medicare Wrap (COB) plans that coordinate between Medicare
and Employer sponsored health coverage.• CIGNA Government Services providing Medicare fee for service
management to several geographic locations across the United States.• On-going participation in CMS demonstration projects including disease
management pilots.
Growth through Multiple Products and Services
• Growth of medical membership presents additional cross-selling opportunities in existing markets and through segment expansion for CIGNA.
• CIGNA has been very effective in driving cross-selling during the past several years.
• Consumerism and Health Advocacy presents new “Specialty” opportunities for our existing, as well as new, book of business.
• CIGNA’s cross-selling strategy positions the organization to grow membership and earnings per member through improved “share of wallet.”
• Opportunity exists across all specialty lines and represents further opportunity to integrate CIGNA’s health and wellness capabilities.
Growth through Multiple Products and Services
Dental
DiseaseManagement
Lifestyle/Wellness
Disability
Pharmacy
Behavioral
Coaching Advocate
Life
Accident
Moderate OpportunityHigh Opportunity Low Opportunity
Voluntary Individual SeniorsSmall Group
National Accounts
Regional Segments
• Opportunity exists across all specialty lines and represents further opportunity to integrate CIGNA’s health and wellness capabilities.
Growth through Multiple Products and Services
Dental
DiseaseManagement
Lifestyle/Wellness
Disability
Pharmacy
Behavioral
Coaching Advocate
Life
Accident
Moderate OpportunityHigh Opportunity Low Opportunity
Voluntary Individual SeniorsSmall Group
National Accounts
Regional Segments
Strategic Impact to Growth and Earnings
CIGNA’s membership growth through greater penetration of Employer Segments and Segment Expansion will generate earnings growth for the division.
• Expect to have 4% - 6% 2007 membership growth across both existing and emerging markets.– Take Share
• Top tier competitors• Second tier competitors
• Extension into Voluntary, Individual, Small Business and Senior Segment will be a key contributor to future earnings growth.
• Growing Segments• Highly fragmented• Significant leverage of core capabilities
• Continued cross-selling of Specialty and Health Advocacy capabilities is expected to improve earnings per member.