CIGNA and Marsh Join Forces to Reduce the Burden of Retiree Health Care Administration

Business Wire, July 25, 2008

BLOOMFIELD, Conn. -- CIGNA and Marsh ConsumerConnexions (Marsh) have joined forces to provide employers with a package that eases the financial and administrative burden of providing retiree benefits. The arrangement provides a combination of CIGNA's simple, affordable and easy-to-use retiree benefit plans with Marsh's award-recognized capabilities.

"Marsh offers a solution that addresses the increasingly complex administrative requirements of offering retiree benefits," said Sam Srivastava, president, national and senior segments for CIGNA HealthCare. "Employers now have a turnkey solution for retiree benefits that incorporates comprehensive coverage, award winning service and health advocacy, with full-service administration handled by a team of recognized experts."

In recent years email and Internet-based communications have been the vehicles of choice for employers to communicate benefits information to their employees. Retirees, however, are more difficult to reach as they may not use the Internet and may have relocated after retirement. Marsh begins managing the communication as an employee retires, providing both toll-free telephone access as well as web capabilities for enrollment, billing and payment, changes to personal information, and general questions about their own health care plans as well as Medicare.

"It's becoming increasingly more difficult for employers to administer retiree benefits on their own. Average retiree call length is two to three times longer than for active employees, making it difficult for employers to staff effectively during open enrollment periods," said Rob McGinnis, president and CEO of Marsh ConsumerConnexions. "With our extensive call center infrastructure and capacity, this is an ideal collaboration with CIGNA to provide easy-to-access, affordable options to help employers continue to offer their employees health benefits after they retire."

Marsh administers retiree benefits from their 2007-JD Power and Associates certified service centers. With award-recognized communications and internal statistics documenting a service resolution rate of 95%, employers and retirees benefit from exceptional customer care. A per-retiree administrative fee is charged and there are typically no up-front implementation or maintenance charges. And, unlike other products available in the marketplace, coalition or membership fees are not required.

According to Ray Brusca, vice president of benefits at Black & Decker, "Marsh took a totally manual system and in a few months was able to establish a comprehensive database, highly automated interfaces with all carriers and our pension trustee and a call center with no disruption of service to our retirees." Brusca indicated that Marsh also helped ensure accurate FAS106 valuation by eliminating "eligibility slippage" which can be very costly. "We can now focus our resources and energy on programs with CIGNA that help improve the health, and therefore productivity, of our active employees," added Brusca.

CIGNA brings a consultative approach to meet each employer's unique coverage needs. CIGNA's broad suite of products and services support individuals as they move through the various stages of their lives, including active participation in health improvement activities during their working years, asset protection and health maintenance as they mature, and finally asset preservation and help navigating the health care system in later years to coordinate care across multiple conditions and health care providers.

"CIGNA and Marsh's combined strengths help address the full range of an employer's retiree health care needs," concluded Srivastava. "The aging Baby Boomer population has created a large demand for turnkey retiree health care coverage that until now has largely gone unmet."

About CIGNA Senior and Retiree Services

A division of CIGNA HealthCare, CIGNA Senior & Retiree Services works to improve the health, well-being and security of the people we serve. With over 40 years experience with Medicare programs, CIGNA currently serves approximately 14 million Medicare eligible individuals and offers a broad array of Medicare and non-Medicare related plans for pre and post 65 retirees and Medicare beneficiaries including medical, dental, behavioral health and pharmacy benefits plans and coverage, as well as retiree administrative services. These plans, coupled with CIGNA's consultative services, help employers and individuals transition from active employment to early retirement or Medicare eligibility with plans and services that meet the individual's unique needs at every life stage. "CIGNA," "CIGNA HealthCare" and the "Tree of Life" logo are registered service marks of CIGNA Intellectual Property, Inc., licensed for use by CIGNA Corporation (NYSE:CI) and its operating subsidiaries, including Connecticut General Life Insurance Company. All products and services are provided exclusively by such operating subsidiaries, and not by CIGNA Corporation. For more information visit www.cignamedicare.com