A former executive of insurance giant Cigna in sworn testimony to Congress accused the insurer of dishonesty and untrustworthiness. That probably comes as no real shock to thousands of people who have experienced being on the wrong side of a dispute with an insurance company. We’re not in good hands, apparently.
The former executive quit Cigna after they denied coverage for a dying California teenager’s liver transplant. Cigna eventually reversed their denial after numerous appeals and media coverage, but the teen died of leukemia only hours after the reversal.
He also testified to Congress about the insurance practice of “purging” clients whose coverage has had too many claims the insurer had to pay. Purging involves jacking up individual and small business renewal premiums so high the insured has no choice but to drop their coverage. These “high expense” clients were targeted for purging to insure Cigna’s profit margin. Cigna had revenues of $19.1 billion in 2008.
The executive also detailed the insurance industry’s coordinated efforts to torpedo health care reform initiatives during the Clinton administration and predicted similar tactics to be used to defeat President Obama’s current efforts.
