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CIGNA CEO Links Health Care Quality to Nation's Economic Health

12th July, 2006

America's employers, employees, health care providers and insurers need to work closely together in promoting and pursuing good health, because, ultimately, the nation's economy and ability to compete effectively in the global market depends on it, according to H. Edward Hanway, chairman and chief executive officer of CIGNA Corporation.

In a keynote address delivered last week at the Global Six Sigma Summit in Las Vegas, NV, Hanway said, "it's not a stretch to suggest that what happens at the micro level in the health care industry has an impact -- for better or worse -- of macro proportions.

"By improving the health and well-being of individuals, we create a more productive work force," he explained. "By supporting a more productive work force, we contribute to a more competitive business community. By improving business competitiveness, we create a stronger economy. And by strengthening the economy, we build a stronger nation."

America's ailing health care system

Good health depends, first and foremost, on quality care, Hanway noted. But health care quality in America is uneven. For example:

* Studies show that only 55% of adult patients receive recommended care,

whether for chronic, acute, or preventive care. This is true across

the entire continuum of medical care, from screening and diagnosis

through treatment and follow-up.

* The 2004 Health Care Quality Report traced nearly 66.5 million

avoidable sick days -- and more than $1.8 billion in excess medical

costs -- to routine failure to provide needed care.

* The Institute of Medicine estimates that 100,000 patients die in

hospitals each year due to medical errors -- three times the number of

people who die on U.S. highways each year.

"America has the highest per capita spending on health care of any nation in the world, but we're not getting our money's worth," Hanway said. "Consumers are fed up with high costs, limited choices and substandard care. They want better value for their money. High cost does not equate to high quality."

Refocusing on quality

Hanway called on the health care industry to stop focusing exclusively on costs, asserting that improving quality will actually reduce costs. As proof, he pointed to CIGNA's experience with continuous quality improvement, as engendered by Six Sigma principles.

Since implementing Six Sigma and other quality-centered methodologies corporate-wide in 2002, CIGNA has realized annualized savings of $100 million, by significantly improving operations against a variety of metrics. At the same time, the quality of care and services delivered to CIGNA's members has been ranked at the top of the industry by independent organizations, including:

* The Disease Management Association of America, which awarded CIGNA its

2005 Disease Management Award;

* The National Business Group on Health, which named CIGNA a "Best

Employer for Healthy Lifestyles" for its efforts in preventing obesity

and promoting a healthy lifestyle for its employees; and,

* J.D. Power & Associates, which made CIGNA HealthCare the first national

health insurance carrier to receive certification for "outstanding

customer service experience."

Hanway suggested that other health benefits providers, health plans and stakeholders in the health care delivery system -- including regulators -- could learn from CIGNA's experience.

"The health care industry shares a collective responsibility to address the realities of providing care in the 21st century," he said. "CIGNA's approach to improving health -- combining consumerism and health advocacy, powered by information -- differentiates us in the industry. Blending principles of continuous quality improvement with a true consumerist approach to health care -- an approach in which individuals can make the right health choices for themselves and their families -- is a powerful and promising way to improve health care in America, while truly removing costs from the system."

About CIGNA

As a Business of Caring, CIGNA (NYSE: CI) provides employers with benefits, expertise and services that improve the health, well-being and productivity of their employees. Serving customers, clients and members in the U.S. and around the globe, CIGNA's operating subsidiaries offer a full portfolio of medical, dental, behavioral health, pharmacy and vision care benefits and group life, accident and disability insurance.

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