Cigna To Provide Service to 15 Southern States as Result of CMS Contract Decision

NASHVILLE, Tenn., Oct. 2, 2006 /PRNewswire-FirstCall/ -- CIGNA Government Services, L.L.C. will provide service to 15 southern states as the result of a new decision by the Centers for Medicare & Medicaid Services (CMS). Under the decision, CMS awarded CIGNA Government Services with the Medicare-related durable medical equipment regional contract for Region C.

The terms of the contract provide that CIGNA Government Services, a subsidiary of CIGNA Corporation, will perform a wide array of administrative services including claims processing associated with durable medical equipment, prosthetics, orthotics, and supplies under Part B of the Medicare program.

Previously, CIGNA Government Services was the durable medical equipment regional contractor for Region D, which covers 17 western states. In 2005, CIGNA Government Services processed more than 13 million claims for Medicare suppliers in Region D, resulting in payments of $1.8 billion from the Medicare Trust Fund.

"This is a very exciting opportunity," said Jean Rush, president of CIGNA Government Services. "We are proud of our high-quality service and we look forward to extending that service to our new customers in Region C."

Awarding of this contract to CIGNA Government Services underscores CIGNA's focus on the health care needs of seniors, according to David Cordani, president, CIGNA HealthCare. "CIGNA Government Services is a premier administrator of government services. The decision to award the administration of Region C to CIGNA Government Services recognizes our leading service and long-term commitment to Medicare's growing senior market."

CIGNA Government Services, and its corporate predecessor, have provided services to Medicare since 1991. In addition to the contract for Region C, CIGNA Government Services will continue to administer the Medicare Part B contract for Tennessee, North Carolina and Idaho.

CIGNA HealthCare, headquartered in Bloomfield, CT, provides medical benefits plans, dental coverage, behavioral health coverage, pharmacy benefits and products and services that integrate and analyze information to support consumerism and health advocacy. "CIGNA HealthCare" refers to various operating subsidiaries of CIGNA Corporation . Products and services are provided by these operating subsidiaries and not by CIGNA Corporation.