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Reflections on 2007 by Ed Hanway

As we start the New Year, I want to share some of the results CIGNA has achieved in 2007. We’ve delivered substantial value to the marketplace – and, in the process, generated a healthy return for our shareholders. Over the last 12 months, our Group Insurance and International businesses have continued to grow and excel relative to the competition. In HealthCare we’ve engaged consumers by bringing innovative new health and wellness solutions to the marketplace, strengthened our network and competitive presence in important businesses and market segments, and announced our intent to expand our capabilities through the acquisition of Great-West Healthcare. In sum, we are proud that 2007 has been a year in which CIGNA has had a powerful impact in helping to improve the health, well-being and security of the people we serve. 
 
To be sure, we’ve achieved a great deal and we have strong positive momentum as we move into 2008. Our goal is to sustain that momentum and build on our progress to this point – certainly no easy task given the highly competitive nature of our marketplace.

I want to thank you personally for your efforts and support in furthering CIGNA’s ongoing success story. Let’s write the next chapter in the year ahead as we strive to enhance the quality of life of more people by helping them improve their health, well-being and security.

And with that, I wish you and yours a healthy and prosperous 2008.

Sincerely,

Ed Hanway
Chairman and Chief Executive Officer, CIGNA Corporation

CIGNA HealthCare PPO Plans Nationwide Earn Accreditation from the National Committee for Quality Assurance
The “Full” accreditation is currently NCQA’s highest accreditation for a PPO

CIGNA HealthCare has earned full accreditation for its PPO plans nationwide from the National Committee for Quality Assurance (NCQA).  The “Full” accreditation – currently NCQA’s highest accreditation rating for a PPO – underscores the quality of CIGNA HealthCare’s benefits plans.

As health care delivery in the United States becomes more consumer-focused, health plan members and employers alike are seeking information that helps them compare the performance of health plans. While this comparative information is increasingly available for health maintenance organization (HMO)-type plans, information on the performance of preferred provider organization (PPO)-type plans has lagged behind. To help close this information gap and be responsive to the needs of health care consumers, CIGNA voluntarily sought accreditation for its PPO and Open Access Plus plans from the National Committee for Quality Assurance (NCQA).

Click here for more information.

CIGNA HealthCare Taps Thomson Healthcare to Deliver Its Health Advocacy and Consumer Engagement Programs
Arrangement gives CIGNA greater data management capabilities and growth in the use of health care data

CIGNA HealthCare has teamed with Thomson Healthcare (NYSE: TOC; TSX: TOC) to help manage the high-volume, high-frequency analytic data CIGNA HealthCare uses to deliver its industry-leading health advocacy programs. This arrangement will give CIGNA HealthCare greater data management capabilities and flexibility for anticipated growth in the use of health care data and informatics.

Thomson Healthcare’s Medstat data services will manage the intake of the data, which CIGNA will use to support and expand its ability to analyze programs, including predictive modeling for early identification of member health care needs, coordination of care and results reporting.

“CIGNA HealthCare’s ability to process, integrate and analyze many sources of data and convert it into usable information is critical for helping our members anticipate health issues, stay healthy or improve their health,” said CIGNA HealthCare's Chief Informatics Officer, William Fandrich. “Thomson Healthcare’s extensive expertise in the management and use of large volumes of data will increase the depth and breadth of information available to support our comprehensive, multi-disciplinary approach to health advocacy.”

“Improving the quality, speed and volume of our informatics capability also will make it easier for our employer customers to access the data they need to administer their benefit programs,” Fandrich said.

Click here for more information.

Examining the Link Between Health Care, Disability and the Bottom Line
Special issue of the CIGNA Group Benefits Bulletin illustrates how integrated benefits can impact employee wellness and employer productivity

Did you know…

• Medical costs for obese employees are 77 percent higher than for healthy weight employees – and obesity-related disabilities can cost employers up to $8,720 per claimant per year?¹
• Only 35 percent of unscheduled absences are due to personal illness – and the direct payroll costs of unscheduled absences cost businesses more than $760,000 per year – and that’s not including indirect costs?²
• 27.2 days of lost productivity per year are due to major depression – 68 percent from presenteeism and 32 percent due to absenteeism?³

A benefits model that brings together medical, behavioral, disability and other employee programs can prevent and reduce medical and disability claims. CIGNA’s special health and productivity issue of the CIGNA Group Benefits Bulletin examines how and why trends – such as an aging work force and the rise in obesity – have a direct and indirect impact to productivity. This timely information about the factors that contribute to overall health and total costs can help you see the dollars and sense of an integrated approach to employee benefits.

As a health, productivity and wellness solutions leader, CIGNA offers proactive programs and resources that impact overall health and total costs with our integrated approach to employee benefits.

If you’d like a copy of this special issue – or if you want to discuss how CIGNA can help you address the needs of the entire employee health and productivity continuum – contact your CIGNA sales representative.

Click here to read the newsletter online.

¹ The Business Case for Weight/Obesity Management Using Health Coaching Interventions,” Leade Health, April 13, 2006
² Commerce Clearing House (CCH) 2006 Unscheduled Absence Survey
³ “Prevalence and Effects of Mood Disorders on Work Performance in a Nationally Representative Sample of U.S. Workers” American Journal of Psychiatry, September 1, 2006

CIGNA Invites Runners to Enter Contest for a Free Trip to the 2008 CIGNA Falmouth Road Race
Contest inspired by dedicated athletes who overcome great adversity or physical challenges

CIGNA has announced it will continue as the title sponsor of the CIGNA Falmouth Road Race in 2008.  This year, CIGNA is inviting runners to enter an essay contest for an all-expense-paid trip to participate in the race. The contest is open to individuals who currently have, or have overcome, a life-altering disability or illness. CIGNA Falmouth Road Race will be held on August 10, 2008 in Falmouth, Massachusetts.

Click here for more information.

Technology Update

CIGNA to Enhance Quality and Cost Capabilities in 2008
Web tool to provide easy-to-find and easy-to-understand information

Over the past few years, CIGNA has introduced several measures for accessing provider quality and cost information. Resources such as the hospital comparison tool and physician profiles provide members with information to help them make better decisions about their health. While users can find price and performance results, the information can be difficult to find and understand. Last fall, CIGNA teamed up with Med-Vantage® to develop and implement an industry-leading capability that will help our members find and understand the information they need with ease. We plan to introduce this new and improved quality and cost capability through myCIGNA.com in April 2008.

So what's changing? To begin with, the ability for a member to explore and optimize an entire episode of care beginning with a symptom or condition. The member can find most probable causes for that symptom, discover their health risks, find a doctor or hospital, discover alternative treatments, understand likely procedures or surgeries associated with that condition, and likely medications. Throughout each inquiry the member will also view related costs and quality results that are market specific. Our goal is to position CIGNA HealthCare as a trusted and preferred destination for health care cost and quality information. By doing so, we help members build confidence in their health care decision-making. This new capability should help us meet that goal and place CIGNA well ahead of its competition. Look for more information in the coming months.

Regional News

What's happening locally
CIGNA HealthCare news for your area

Get the latest CIGNA HealthCare news for your part of the country. Every month, we post new articles of interest and update the states to which they apply. Here's where you'll also find up-to-date local contact information to help you with your questions and concerns. Want to know the news for your area? Find out here.

(NOTE: States with new articles of special interest are highlighted in blue.)

Health Care News and Trends

Best Practices for Employee Health and Productivity
In-depth web seminar series looks at critical issues for today’s employers

Rising health care costs, increasing rates of obesity and chronic conditions, diminished productivity, aging labor pool...that’s just the beginning of what employers face as they seek to sustain and enhance their competitive advantage and grow their bottom line. While the challenges may be daunting, employers can follow a model for bringing together medical, behavioral, pharmacy, disability, dental, vision, disease management, leave and absence management and other employee wellness programs to work synergistically to sustain and improve worker health and productivity.

This series of CIGNA-sponsored seminars throughout 2008 will feature timely information on critical issues for today’s employers. Each session will feature an expert exploration of factors that impact overall health and total costs, and the dollars and sense of an integrated approach to employee benefits.

Mark your calendar today for session one on February 21 at 2:00pm Eastern time, which will examine the health and productivity trends that are making a bottom line impact today. This foundational seminar sets the stage for knowing what’s driving health and productivity challenges, and more importantly, how to implement and measure interventions that move the needle. Session one speaking panel:

• Dee W. Edington, Ph.D., Director, University of Michigan Health Management Research Center
• Allen Woolf, M.D., Chief Medical Officer, CIGNA Group Insurance

Please click here to register for the sessions.

“CIGNA” and “CIGNA HealthCare” are registered service marks of CIGNA Intellectual Property, Inc., licensed for use by CIGNA Corporation and its operating subsidiaries. Products and services are provided by such operating subsidiaries and not by CIGNA Corporation. These operating subsidiaries include Connecticut General Life Insurance Company, Tel-Drug, Inc. and its affiliates, CIGNA Behavioral Health, Inc., Intracorp, and HMO or service company subsidiaries of CIGNA Health Corporation and CIGNA Dental Health, Inc. In Arizona, HMO plans are offered by CIGNA HealthCare of Arizona, Inc. In California, HMO plans are offered by CIGNA HealthCare of California, Inc. In Connecticut, HMO plans are offered by CIGNA HealthCare of Connecticut, Inc. In Virginia, HMO plans are offered by CIGNA HealthCare Mid-Atlantic, Inc. In North Carolina, HMO plans are offered by CIGNA HealthCare of North Carolina, Inc. All other medical plans in these states are insured or administered by Connecticut General Life Insurance Company.

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