CIGNA To Cut About 1,100 Jobs

Published: Friday, 01/09/09
A subsidiary of health insurer CIGNA that employs 1,000 people in Nashville has lost a contract under which it processes and pays claims to Medicare, mostly from doctors.

CIGNA Government Services isn't saying how many local jobs could be affected when Birmingham, Ala.-based Cahaba Benefit Administrators LLC takes over the work later this summer.

But at least one observer said some layoffs could occur at the insurer's offices in MetroCenter.

"In this economy, it would be quite difficult for them to absorb … unless they can win another contract quickly and retain these employees," said Jane DuBose, health plan research director with HealthLeaders-InterStudy here.

The federal contract covers processing and payment of claims from hospitals as well as doctors and ambulance services in Alabama, Georgia and Tennessee. Medicare's overseer has been consolidating contractors to improve oversight and better manage costs.

CIGNA partnered in its bid with health insurer BlueCross BlueShield of Tennessee's Riverbend subsidiary, which currently processes claims from hospitals in Tennessee. Losing bidders such as CIGNA can appeal contract awards.

Company disappointed

John M. Kelly, a spokesman, said the company was disappointed but declined to comment on its plans. "We'll continue to operate business as usual throughout the transition period," he said.

Kelly said CIGNA would continue processing Medicare claims here from suppliers of medical equipment such as wheelchairs, including from 17 Southern states, under a contract it won last year. Afterward, it added more than 200 employees here.

Mary Thompson, a spokeswoman for Chattanooga-based BlueCross, said about 160 Riverbend employees handle the work processing claims from hospitals statewide.

She said it's too early to discuss what the contract loss might mean.

Published: Friday, 01/09/09

Mandy wrote:

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Just curious... is it cheaper to go through Amica than get insurance through your employer? Is the coverage comparable?

Yes - Amica was cheaper than my own employer including the employee discount! And I keep asking Amica whenever I call them if they outsource, and they insist that they don't. That alone is enough for me to do business with Amica. I spend a lot of time looking for companies that don't outsource. That's why I closed all my accounts at Bank of America and Sovereign Bank and put all my money in Citizens Bank and People's Bank. Citizens and Peoples say they don't outsource any work. And whenever I call them - the call centers are ALWAYS answered by an American. Every time I do business with a company, if I get an offshore call center, I ask them to transfer me to an American call center. When I get transferred, I close the account and tell them it's because they outsource. I'm fighting my own little war against outsourcing. I wish more people would do the same - maybe we could make a difference.

Buy Amica wrote:

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Yes - Amica was cheaper than my own employer including the employee discount! And I keep asking Amica whenever I call them if they outsource, and they insist that they don't. That alone is enough for me to do business with Amica. I spend a lot of time looking for companies that don't outsource. That's why I closed all my accounts at Bank of America and Sovereign Bank and put all my money in Citizens Bank and People's Bank. Citizens and Peoples say they don't outsource any work. And whenever I call them - the call centers are ALWAYS answered by an American. Every time I do business with a company, if I get an offshore call center, I ask them to transfer me to an American call center. When I get transferred, I close the account and tell them it's because they outsource. I'm fighting my own little war against outsourcing. I wish more people would do the same - maybe we could make a difference.

I use a local bank where, when I call them, I actually get a person who is physically in the bank in my town. It's very nice. I'll have to check Amica out. Thanks for the tip.

We love having you all here too. It is affirmation to the women here that we are tops on the food chain. Secondly, for the guy that indicated that Indians are smarter for less. Let me quickly say that my experience is there are good Indian workers and bad ones; just like all other workers. Secondly, you do not have jobs here because you are smarter or better programmers (I have fixed so much Indian code, it kills me). Senior management merely perceives you as cheaper .... that is why they keep you around. If they did a true cost benefit analysis and factored in rework I think that myth would quickly be dispelled. Lastly, as we continue to train all of you, you continue to switch jobs for more money. This high turnover is getting old for certain. The increasing pricing pressures you are putting on companies as you switch jobs for more and more money will certainly be your undoing (as it was for domestic workers). I assure you that you are not being employed because of your skills. When your pricing advantage wears out, I assure you the idiots running these companies will pull the rug out from under you, your company, and your economy and go with a cheaper alternative in some other 3rd world country who will work for 1/2 of what you do.

Tunku Varadarajan wrote:

we indians like being in the states working in jobs previously done by yankees. we especially like your hottie ladies with their big bubies and tatoos. most yankee men are lazy drunkards that only care about futball and scratch lottery tickets

H1BLuva wrote:

We love having you all here too. It is affirmation to the women here that we are tops on the food chain. Secondly, for the guy that indicated that Indians are smarter for less. Let me quickly say that my experience is there are good Indian workers and bad ones; just like all other workers. Secondly, you do not have jobs here because you are smarter or better programmers (I have fixed so much Indian code, it kills me). Senior management merely perceives you as cheaper .... that is why they keep you around. If they did a true cost benefit analysis and factored in rework I think that myth would quickly be dispelled. Lastly, as we continue to train all of you, you continue to switch jobs for more money. This high turnover is getting old for certain. The increasing pricing pressures you are putting on companies as you switch jobs for more and more money will certainly be your undoing (as it was for domestic workers). I assure you that you are not being employed because of your skills. When your pricing advantage wears out, I assure you the idiots running these companies will pull the rug out from under you, your company, and your economy and go with a cheaper alternative in some other 3rd world country who will work for 1/2 of what you do.
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hey yankee - if i want to read a book, i shall go to the library. it is funny to see yankee it workers getting manipulated by their overseers. what u say about indians has some truth, but right now we are winners and u r losers.

I work for Cigna and they are being so hush hush about all of this. No one will tell us if my office will be affected and I've been scouring the net for any info I can find. Does anyone know which offices might be consolidated or where the layoffs may occur? They are so good about not telling us until the day of that we don't have time to find another job because then we are competing with 500 other out of work employees as well.. I'm so stressed. If you found or know of any other info I'd appreciate hearing about it, thanks!

anon wrote:

I work for Cigna and they are being so hush hush about all of this. No one will tell us if my office will be affected and I've been scouring the net for any info I can find. Does anyone know which offices might be consolidated or where the layoffs may occur? They are so good about not telling us until the day of that we don't have time to find another job because then we are competing with 500 other out of work employees as well.. I'm so stressed. If you found or know of any other info I'd appreciate hearing about it, thanks!

As I have said many times, you have to be pro-active in this economy and be smarter than the average bear. Here is my advice

1) DO NOT wait to find out if you are going to be laid off. Unless you have been there a long time your severance may not carry you very far.

2) Update you resume NOW! Dont wait till tommorow, next week, next month. Do it TODAY.

3) Start calling head-hunters and even temp agencies and see what, if anything is avaialble.

4) Dont make any major purchases (i.e car, vacation etc.) You need to save every penny possible in case you get thrown out on the street tommorow. 1 excpetion: Buy a new suit/outfit for an interview. Make sure you look professional.

5)Get ready for change. It sucks but its gonna happen. Read "Who Moved My Cheese" when you have a moment.

6)Pray

Good Luck......

Capt Kirk wrote:

<quoted text>
As I have said many times, you have to be pro-active in this economy and be smarter than the average bear. Here is my advice
1) DO NOT wait to find out if you are going to be laid off. Unless you have been there a long time your severance may not carry you very far.
2) Update you resume NOW! Dont wait till tommorow, next week, next month. Do it TODAY.
3) Start calling head-hunters and even temp agencies and see what, if anything is avaialble.
4) Dont make any major pur

chases (i.e car, vacation etc.) You need to save every penny possible in case you get thrown out on the street tommorow. 1 excpetion: Buy a new suit/outfit for an interview. Make sure you look professional.
5)Get ready for change. It sucks but its gonna happen. Read "Who Moved My Cheese" when you have a moment.
6)Pray
Good Luck......

Very well put,but there ultimately comes a time when the pay back for all the wrongs Cigna has done to others... And oh boy the pay back will be a bitch.

Complaints about losing your jobs, what should we say thttp://pennsylvaniaprogressiv e.typepad.com/my_weblog/2007/0 7/cigna-and-me.htmlhey tried to take our lives, and then some:

http://pennsylvaniaprogressive.typepad.com/my...

Thanks for the advice capt kirk, I have been in the process of making sure I have a plan B if we do get laid off.
Also I need to emphasize, I worked for another insurance company and cigna bought us out last year so it wasn't my choice to work for them, I know their reputation, I don't even pay cigna clms, I still pay claims for our old insurance while it's being phased out, which was a good insurance. So I understand those of you that were burned by cigna. But in our town there isn't anything else available so I'm stuck in this job until further notice. I have 4 kids so I'm worried about a possible layoff so I'm keeping an eye on the net for any changes. thanks!

Maresh Patel wrote:

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my feet smell better than newark and your breath for that matter.

very intelligent retort ! but, how can you smell anything through the stench of curry?

The Truth Hurts wrote:

CIGNA has outsourced IT to Siemens, claim payment to India and Ireland, training to General Physics, customer service to Nova Scotia, Sitel call centers, various other jobs to the Philippines. If you are a physician your personal information including SSN, address, medical school, date of birth and most other personal information is floating around all over the world. If you have CIGNA insurance the same goes for you. Your name, date of birth, social security number, address and medical information is spread around the world to possibly be stolen and sold in these third world countries who aren't friends of the USA unless they are taking our jobs for 25 cents an hour. Until the policy holders and doctors understand this the jobs will continue to be lost.

All that may be true except for some NY state residents because NY was smart enough to put in regulations governing who can handle the claim and claim information, California has an even more restrictive process for HMO members, and NJ whose regulations only cover state employees.

In this day and age of job losses regulations like these keep jobs home. Odd how only 2 of 50 states care where their claims are done for their residents and even then it does not apply to everyone in those states.

You want to stop off-shoring, start at home with you local legislative representative.

Ten months later and most of the anglo it workers have been replaced with indian H1B contractors

It's amazing that so many Americans are so quick to tell others how to run their business.

Are we equally as quick to let others tell us how to run ours?