CIGNA trims 2,000 jobs, consolidates regional call centers

The insurer joins Aetna and PacifiCare among plans cutting staff.

By Myrle Croasdale, AMNews staff. Jan. 28, 2002.

CIGNA Corp. has become the third managed care insurer in the past few months to announce that it will cut jobs.

The Philadelphia-based company said it would ax 2,000 jobs from its employee health, life and disability benefits unit this year as it restructures to save at least $45 million annually starting in 2003. CIGNA is the third national health insurer to take such steps in recent months. Aetna and PacifiCare Health Systems also have announced layoffs scheduled to take place this year.

CIGNA spokesman Wendell Potter said the job cuts were a byproduct of an effort to update the company's service center technology and simplify its claims processing system.

"This is not at all because of the recession," Potter said. "This is part of an effort under way to enhance our service capability."

By year's end, CIGNA will have nine regional service centers, down from more than 20 currently scattered across the country, to handle calls from its 14 million medical plan members and 13 million dental plan members. The job cuts will trim CIGNA's work force by 4.5% and will come primarily from closing call centers.

CIGNA will reduce the number of software platforms for medical claims from 15 to two, with customer eligibility systems dropping from 15 to one. [...]