Cigna Corp

Forging one of the largest medical groups in the nation and a powerhouse in Southern California, Caremark International Inc. said Thursday that it is acquiring 29 Southland medical clinics from Cigna Corp. for an undisclosed sum. The deal marks the end of one of the nation's oldest "staff-model" health maintenance organizations, in which an insurer hires salaried doctors to work exclusively at HMO-owned clinics and hospitals.

WellPoint Inc. and Cigna Corp. each agreed to pay about $10 million to settle an investigation by New York into how the insurer reimburses clients for out-of-network services, according to a person familiar with the probe. They are the latest insurers to agree to fund a new nonprofit database to help determine reasonable and customary charges for reimbursement. UnitedHealth Group Inc. settled for $50 million, and Aetna Inc. paid $20 million.

The American Medical Assn. is joining several state medical associations in suing health insurers Aetna Inc. and Cigna Corp. over a database they say was rigged to underpay doctors on out-of-network claims for more than a decade. But Cigna said doctors' rates were part of the problem. The lawsuits heap more criticism on Ingenix Inc. data that already have cost UnitedHealth Group Inc. of Minnetonka, Minn., $350 million to settle a separate lawsuit involving the AMA.

Health insurer Cigna Corp. said it would spend $100 million to restructure its health-care division and would take at least a year to rebuild after a pricing miscalculation sent the company's profit plummeting. In a bid to stave off competition and win over dissatisfied customers grumbling about poor service, Cigna offered some clients deeper price discounts last year than the company had planned, or could afford, officials said. Shares of Cigna fell 81 cents to $38.58 on the NYSE.

Cigna Unit Gets Green Light for Restructuring: A Pennsylvania judge's ruling allows the Philadelphia-based insurer to proceed with reorganizing its U.S. property and casualty business, pending an appeal by opposing insurers and policyholders. Judge James Colins of the Commonwealth Court denied a request for a stay until an April 17 hearing on whether the case will be reviewed. Pennsylvania regulators have approved Cigna Corp.'s plan to split the business.

Cigna Corp. said fourth-quarter profit fell 60% from a year earlier when the fourth-largest U.S. provider of health insurance almost doubled its earnings on cost cuts and the sale of a unit. Net income for Cigna, which has lost almost 4 million members since 2002, fell to $224 million, or $1.78 a share, from $558 million, or $4.16, the Philadelphia-based company said. Revenue fell 3% to $4.21 billion. Enrollment in Cigna health plans last quarter fell 6% from a year earlier to 9.

Wilson H. Taylor has been elected vice chairman and chief operating officer at Cigna Corp., both new positions. He has also been elected a member of the board of the Philadelphia-based insurance firm. Taylor, 43, is president of Cigna's property and casualty business.

Cigna Corp. Earnings Plunge: Cigna Corp., one of the nation's largest insurers, said its third-quarter earnings plunged more than 55%, mostly because of claims resulting from hurricanes Andrew and Iniki. Third-quarter profit totaled $55 million, or 77 cents per share, on revenue of $3.36 billion. That compared to earnings of $123 million, or $1.72 per share, on revenue of $3.41 billion a year ago.

Cigna Corp. said it will eliminate 3,900 jobs as the company tries to cut costs after underpricing its premiums. The company expects to have an expense of $98 million in the fourth quarter for the job cuts, Cigna said. Shares of the Philadelphia-based company fell 20 cents to $41.30 in NYSE trading before the announcement.

Investors snapped up shares of Cigna Corp. after the managed-care company reported fourth-quarter earnings that beat analyst expectations and offered a dose of reassurance. Philadelphia-based Cigna said it lost $209 million, or 77 cents a share, in the quarter compared with a profit of $263 million, or 93 cents, a year earlier. But the company also reported an adjusted profit -- excluding one-time items -- of 49 cents a share and said revenue increased 8% to $4.82 billion. Analysts polled by Thomson Reuters had expected, on average, a profit of 41 cents on $4.75 billion in revenue.

The family of a 17-year-old leukemia patient has sued health insurance giant Cigna Corp. for her death last year after the company initially refused to pay for a liver transplant. The lawsuit filed last week in Los Angeles County Superior Court by the family's attorney, Mark Geragos, alleges breach of contract, unfair business practices and intentional infliction of emotional distress.

Consulting your family physician is finally moving into the 21st century and out of the doctor's office. Since the dawn of e-mail, patients have been pleading for more doctors to offer medical advice online. No traffic jams, no long waits, no germ-infested offices with outdated magazines and bad elevator music. There was always one major roadblock: Most health insurers wouldn't pay for it. Until now. In recent weeks, Aetna Inc., the nation's largest insurer, and Cigna Corp.

A Friday funeral was set for the Northridge teenager who died last week after her insurer refused to pay for a liver transplant and then reconsidered. Meanwhile, the girl's health plan stood by its initial decision Monday.

Cigna Corp. agreed to improve its rankings of physicians in response to an investigation of health insurers suspected of using the list to direct patients to cheaper doctors instead of better ones, New York's attorney general said. Cigna, a Philadelphia-based insurer, will report to the attorney general every six months and will use an outside monitor to oversee compliance, Atty. Gen. Andrew Cuomo said.

New York Atty. Gen. Andrew Cuomo warned health insurers Aetna Inc. and Cigna Corp. on Thursday that planned programs that rank physicians on quality and cost would be likely to confuse or deceive consumers. In letters to the insurers, Cuomo took issue with the design of Aetna Aexcel and Cigna Care Network programs that would encourage members to use specialists whom the insurers have identified as delivering quality care while containing costs.

Cigna Corp. agreed to improve its rankings of physicians in response to an investigation of health insurers suspected of using the list to direct patients to cheaper doctors instead of better ones, New York's attorney general said. Cigna, a Philadelphia-based insurer, will report to the attorney general every six months and will use an outside monitor to oversee compliance, Atty. Gen. Andrew Cuomo said.

Hundreds of actors, artists, musicians and writers in California are facing massive increases in their health insurance premiums -- a situation that could face other consumers who don't have employer-sponsored health plans, advocates and lawmakers said. Cigna Corp., which has sold insurance to members of the entertainment industry through their professional associations for 25 years, is raising premiums for actors and others by an average of 82%, with some hikes as high as 254%.

Cigna Corp. on Wednesday reported a 15% increase in third-quarter profit, buoyed by a strong showing in its health insurance business as membership rolls increased and the company better managed its medical costs. In the quarter, net income rose to $298 million, or $2.75 a share, from $259 million, or $2, during the same period last year. Earnings excluding investment gains and other nonoperating items increased to $268 million, or $2.48 a share, in the latest quarter from $251 million, or $1.