Saturday, November 17, 2007

Cigna Unfazed by '08 Election (and the need to pitch in?)

Cigna's just kinda laying it out there, huh? See the article below captured from the Hartford Courant website. I love how they tell us it's a good thing that patients will pay more out of pocket. In this article they help answer the question "where's all the money in health care?" 10% growth no matter how desperate the country is to lower costs? They do recognize that funnelling patients to doctors that do a good job clinically and help lower costs is part of their plan. I give them that much credit. The chiropractors have been suggesting that for 15 years. However, will they share their "savings" with employers and patients? Um, well, they're more likely to keep it all and then report it to Wall Street as 10% growth...which is pretty much what they are telling us here. Please correct me if I am wrong.

"LITTLE ROCK, Ark. —NEW YORK — - CIGNA Corp., the U.S. insurer specializing in employer-sponsored health plans, expects net income to grow an average 10 percent a year regardless of who wins the 2008 elections, the company's chief executive said.The Philadelphia-based company will gain under any of the health care plans being offered by candidates for president, CEO Edward Hanway said Friday at an analysts meeting in New York. CIGNA will emphasize high-deductible health plans that give policyholders incentives to control costs, guide them to preferred doctors and offer preventive advice, he said.Voters have put health care reform high in polls for the presidential campaign agenda, and candidates are outlining plans to provide benefits to some or all of the 47 million uninsured Americans. CIGNA will capitalize on that, expanding sales of plans to individuals and families and to the elderly through the U.S. Medicare program, Hanway said.
The 10 percent gain in net income forecast for the next three to five years will translate into earnings per share of 12 percent to 15 percent, according to the forecast."

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