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Cigna CEO:Prepared To Adapt To Health-Care Overhaul Proposals



By Dinah Wisenberg Brin, Of DOW JONES NEWSWIRES

Cigna Corp. (CI) is prepared to adapt to any of the health-care overhaul proposals that the U.S. Congress is now considering, although the insurer believes those receiving the most attention would have negative, unintended consequences, Chairman and Chief Executive H. Edward Hanway said Friday.

"We are well-positioned to adapt as necessary and to compete effectively and profitably in the reform scenarios under consideration at the present," Hanway said at the company's annual investor day, being webcast from New York.

Policy makers' goal of expanding access to health coverage is worthy, yet lawmakers can't achieve reform without also tackling issues of cost and quality of care, he said.

"Most of the proposals in play at the moment clearly don't do that," Hanway said. Those being discussed "would have the serious, unintended consequence" of raising costs, including adding new taxes and fees, and would lower benefits to seniors in Medicare plans, he said.

Cigna supports guaranteed coverage and strong financial incentives for all individuals to maintain health insurance, Hanway said, reflecting industry positions. Health policy should include wellness and prevention programs that provide incentives to maintain good health, he said, explaining that chronic disease prevention could save $16 billion annually in health costs in five years.

Cigna's "highly diversified portfolio" gives it less exposure than competitors to government health-care and the possible adverse effects to insurers of changes in health laws, Hanway said.

-By Dinah Wisenberg Brin, Dow Jones Newswires; 215-656-8285; dinah.brin@ dowjones.com


  (END) Dow Jones Newswires
  11-20-091030ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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