Business
Cigna buys small health plan
NEWS IN BRIEF — Posted July 17, 2006
Cigna said it is buying Star HRG, a provider of limited-benefit, low-cost health insurance plans and other benefits coverage.
Star's plans are offered mainly to part-time and hourly workers who purchase insurance through an employer. In addition to hiring Star's executive team, the deal allows Cigna to absorb Star's entire product line, including medical and pharmacy coverage, employee assistance programs and supplemental products such as dental and vision care. Financial terms were not disclosed.
The Phoenix-based company employs 320 people and, according to its Web site, has 1,000 corporate clients and 200,000 members.
David Cordani, president of Cigna HealthCare, said the company acted in response to national and regional employers who told Cigna officials they wanted to offer affordable health benefits to employees who otherwise wouldn't be able to obtain it.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2006/07/17/bibf0717.htm.
