Cigna 2008 Annual Report Download - page 78

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Maintaining and upgrading information technology systems. The Company’s current business model and long-term strategy require
effective and reliable information technology systems. The Company’s current systems architecture will require continuing
investment to meet the challenges of increasing customer demands from both our existing and emerging customer base to support its
business growth and strategies, improve its competitive position and provide appropriate levels of service to customers. The Company
is focused on providing these enhanced strategic capabilities in response to increasing customer expectations, while continuing to
provide a consistent, high quality customer service experience with respect to the Company’s current programs. Accordingly, in 2009,
the Company’s efforts will be focused primarily on optimizing the technology underlying our claims processing and call servicing
capabilities with specific emphasis on reducing handling time and improving customer service. Continued integration of the
Company’s multiple administrative and customer facing platforms is also required to support the Company's growth strategies, and to
ensure reliable, efficient and effective customer service both in today’s employer focused model as well as in a customer directed
model. The Company’s ability to effectively deploy capital to make these investments will influence the timing and the impact these
initiatives will have on its operations.
Profitably growing medical membership. The Company continues to focus on growing its medical membership by:
• increasing its share of the national, regional and select segments;
• providing a diverse product portfolio that meets current market needs as well as emerging consumer-directed trends;
• developing and implementing the systems, information technology and infrastructure to deliver member service that keeps pace
with the emerging consumer-directed market trends;
• ensuring competitive provider networks;
• maintaining a strong clinical quality in medical, specialty health care and disability management; and
• increasing specialty penetration.
The Company is also focused on segment and product expansion. In segments, our focus is predominantly in the “Select” (employers
with 51-250), small business (employers with 2-50) and individual segments. We also expect to expand our voluntary capabilities and
to focus on health as well as pharmacy and dental. As part of its effort to achieve these objectives, the Company completed the
acquisition of Great-West Healthcare of Denver, Colorado on April 1, 2008. Also, our Star HRG acquisition serves as our platform to
further develop our voluntary portfolio. These acquisitions will enable the Company to broaden its distribution reach and provider
network, particularly in the western regions of the United States, and expand the range of health benefits and product offerings.
Additionally, the Company has recently developed new product offerings for both our guaranteed cost and experienced rated
portfolios. Driving additional cross selling is also key to our value proposition. We are expanding network access for our dental
product and improving network flexibility to ensure better alignment with our customers’ needs. Also, with the acquisition of Great-
West Healthcare, we will be working in 2009 to transition this book to CIGNA pharmacy and increase penetration across the entire
book.
Offering products that meet emerging customer and market trends. In order to meet emerging customer and market trends, the
Company’s suite of products (CIGNATURE®, CareAllies®, and CIGNA Choice Fund®) offers various options to customers and
employers and is key to our customer engagement strategy. Offerings include: choice of benefit, participating provider network,
funding, medical management, and health advocacy options. Through the CIGNA Choice Fund®, the Company offers a set of
customer-directed capabilities that includes options for health reimbursement arrangements and/or health savings accounts and enables
customers to make effective health decisions using information tools provided by the Company.
Underwriting and pricing products effectively. One of the Company’s key priorities is to achieve strong profitability in a competitive
health care market. The Company is focused on effectively managing pricing and underwriting decisions at both the case and overall
book of business level, particularly for the guaranteed cost and experience-rated businesses.
Effectively managing medical costs. The Company operates under a centralized medical management model, which helps facilitate
consistent levels of care for its members and reduces infrastructure expenses.
The Company is focused on continuing to effectively manage medical utilization and unit costs. The Company believes that by
increasing the quality of medical care and improving access to care we can drive reductions in total medical cost. To help achieve
this, the Company continues to focus on renegotiating contracts with providers and certain facilities to limit increases in medical
reimbursement costs. In addition, the Company seeks to strengthen its network position in selected markets. In connection with the
Great-West Healthcare acquisition in April 2008, the Company is converting and integrating these acquired members to its extensive
preferred provider network which offers access to a broad range of utilization review and case management services. By directing
members to the highest quality and most efficient network providers and leveraging their clinical engagement protocols we are
realizing benefits from the increased utilization.