CIGNA Voluntary recently completed a study that examines the attitudes, concerns and health care practices of the working uninsured. The study was conducted by surveying a population representative of working uninsured earning $8-$12 who did not have access to insurance through an employer or spouse.

Important findings to consider were:

• 64% skip doctor visits because of cost
• Health insurance was listed as the eighth most important household expense, behind: Rent/mortgage, groceries, utilities, gas, car insurance, vehicle maintenance and car payments
• The younger uninsured demographic valued low doctor visit costs; while the older demographic valued in-patient coverage most
• Low monthly premium was the most important plan feature identified; pharmacy and wellness coverage also ranked high
• In-person enrollment interaction is preferred, as 60% prefer plan enrollment through a one-on-one or group meeting
• 77% seek health care information via internet

Although many of the findings confirmed assumptions that we all make about working uninsured, the statistic regarding internet access was particularly insightful. Many people mistakenly believe that internet access is limited to groups with higher income and education levels. Whether they access the internet at work, at home,
or through public facilities, the working uninsured are overwhelmingly interested in receiving health care information online.

In response to this statistic, CIGNA Voluntary is working on the development of
a members-only marketing site designed to educate the working uninsured and answer questions such as “Why do I need insurance?” or “What is a deductible?” The site will offer interactive tools and health insurance information developed specifically for the working uninsured. Look for this new website in early 2009.

Respondents were also asked to weigh out-of-pocket expenses and coverage levels with premium prices—and as many brokers can verify—premium was picked as the most important factor. This statistic is especially important when marketing a limited-benefit health plan, since picking the lowest level of coverage based on premium alone isn’t always the right decision for every individual.

For more information about the working uninsured, or the CIGNA Voluntary plans and programs designed to meet their needs, contact your sales representative today.

CIGNA Voluntary GM Discusses Limited Benefit Market
on EBA Podcast

CIGNA Voluntary’s General Manager recently discussed the limited medical benefits industry with Employee Benefits Adviser during an interview for their daily podcast and November issue special section.

The interview with Jeff Stelnik, General Manager of CIGNA Voluntary, covered several issues relevant to the broker community, including limited-benefit plan value, comprehension and usability. In addition, Stelnik discussed CIGNA Voluntary’s plan design, wellness benefits and details of the award-winning Employee Assistance Program.

The Sept. 18 interview can be found at: www.cignavoluntary.com/newsroom.

Direct download (mp3)

CIGNA Recognized by Business Insurance

CIGNA was recently recognized by Business Insurance magazine’s 2008 Readers’ Choice Awards as having the ‘Best Managed Care Organization’ for the first time, replacing United HealthCare, and ‘Best Employee Assistance Program’ for the fourth consecutive year.

“Their readers’ naming CIGNA as best for both health plans and assistance programs is an important validation of CIGNA's strategic direction as a health service company,” said David Cordani, CIGNA president and chief operating officer.

The Business Insurance Readers Choice Awards recognize the companies that the magazine’s subscribers believe offer the best combination of quality, service, value and innovation.

State-by-State Update:
Agent-Broker Bill Passed in California

Assembly Bill 2956, a bill that clarifies the duties of an agent compared to a broker; passed through the California legislature in August and was sent to Governor Arnold Schwarzenegger for his signature on Sept. 17.

The bill states that an insurance agent is a person who transacts insurance other than life, disability or health insurance on behalf of an admitted insurance company. The goal of the bill is to clarify when an insurance professional is acting in the capacity of a broker versus an agent in the state of California. In addition, the bill aims to ensure that a person acting as an insurance broker is the same individual named as the insurance broker on a submitted application.

Assembly Bill 2956 will require notice specifying the scope of an agency appointment and require that the individual acting as an agent-broker is licensed in the state the application is submitted.

The bill also organizes the requirement that brokers disclose their fees in a written agreement signed by the consumer, applicable in all brokered transactions. Current law states only insurance brokers who are truly independent of insurance companies can charge broker fees.

Those who opposed the bill say it would undermine recent court rulings that protect customers from paying deceptive and illegal broker fees to insurance agents. They state that Assembly Bill 2956 would lessen the distinction between brokers and agents.

Supporters of the bill, including The Alliance of Insurance Agents and Brokers and the Western Insurance Agents Association agree that the bill will clarify when an insurance professional is acting in the capacity of a broker versus an agent in California.