Cigna 2008 Annual Report Download - page 30

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• national managed pharmacy, behavioral health and utilization review services companies.
Competition also arises from smaller regional or specialty companies with strength in a particular geographic area or product line,
administrative service firms and, indirectly, self-insurers. In addition to these traditional competitors, a new group of competitors is
emerging. These new competitors are focused on delivering employee benefits and services through Internet-enabled technology that
allows consumers to take a more active role in the management of their health. This is accomplished primarily through financial
incentives, access to enhanced medical quality data and other information sharing. The effective use of the Company’s health
advocacy capabilities, decision support tools (some of which are web-based) and enabling technology are critical to success in the
health care industry, and CIGNA HealthCare believes they will be competitive differentiators.
Industry Developments and Strategic Overview
Both state and federal lawmakers have supported a broad range of health care reform efforts due to the recent demand for changes
to the health care industry. The Company expects that these efforts will intensify in 2009. The proposal and/or passing of any reform
initiatives would affect the health care industry in general and CIGNA, specifically. CIGNA advocates creating a value-based
healthcare system that provides access to care for the uninsured, fosters and rewards quality, and makes care more affordable by
educating consumers to the true costs and quality of care and supporting better decision making. CIGNA envisions such a system as a
partnership between private and public sectors, taking the best of what the private and public sector programs offer and creating a
system that addresses the needs of all. CIGNA is intensely involved in developing workable solutions for reforming America’s
healthcare system.
As part of its business strategy, CIGNA continually evaluates potential acquisitions and other transactions that could enhance the
Company’s competitive capabilities and provide a basis for membership growth and/or improved medical costs. In 2008, CIGNA
acquired the assets of Great-West Healthcare, the healthcare division of Great-West.
Also, in connection with CIGNA’s long-term business strategy, the Company intends to continue to focus on the fundamentals of
its health care business in order to provide consistent, reliable service to customers at a competitive cost; differentiating the health care
business from its competitors by facilitating consumer engagement to realize improvement in the individual’s health and well-being;
and segment expansion, particularly in the voluntary, individual, small business and “Select” markets.