CIGNA Completes Acquisition of Great-West Healthcare

   Headquartered in metro Denver, Colorado, Great-West Healthcare is now part of CIGNA, one of the nation's leading health service businesses. The transaction includes 1.9 million covered lives, including approximately 1.4 million medical members in its employer segment, which is consistent with CIGNA's expectations.

   "The addition of this organization and its talented team will broaden our distribution and provider network in key geographic areas and expand the range of health benefits and products we offer," said CIGNA HealthCare President David Cordani. "This transaction increases the opportunities for national and mid-size employers to improve the health, well-being and security of their employees, and adds service and distribution capabilities specifically designed to meet the needs of smaller businesses."

   The acquisition is inclusive of Great-West Healthcare's people and full portfolio of health and group insurance offerings and the supporting information technology infrastructure. Great-West Healthcare offers a broad range of products and services, including consumer-driven health care plans, which are offered with a range of funding options.

   CIGNA continues to expect that the acquisition will be accretive to earnings beginning in 2008. Synergies are anticipated to be achieved related to managing medical costs, capturing operating expense synergies and growing membership over time.

   Keywords: CIGNA Corporation.

   This article was prepared by Pharma Business Week editors from staff and other reports. Copyright 2008, Pharma Business Week via NewsRx.com.

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