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Cigna CEO David Cordani on the role employers play in healthcare

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Screen Shot 2018 07 26 at 5.33.55 PM
Cigna CEO David Cordani
thinks employers should be tied to healthcare.

Business Insider

  • Employers pay for the healthcare of more than half of
    the non-elderly population in the US, and as healthcare costs
    go up, it’s putting them in a tough spot. 
  • But having employers involved in healthcare isn’t the
    worst thing, Cigna CEO David Cordani told Business
    Insider. 
  • “An employer actually has a vested interest in helping
    to keep their employees healthy, and productive, and present
    from a work standpoint,” he said. 

America’s healthcare system has a lot of quirks. 

One of its biggest: its reliance on employers to cover health
insurance as a benefit. 

More than
half of the non-elderly 
population is
covered by an employer-sponsored plan, and almost
80% of
large companies are self-insured 
.

Employers have a long history of covering healthcare for their
employees
dating back to World War II
, as a way to convince people to
work for factories that were ramping up production during the war
economy.

But as healthcare costs have gone up, employers are the ones
feeling the pressure. And some are starting to get fed up,
prompting some of America’s biggest companies including
Berkshire Hathaway, Amazon, and JPMorgan
to start to do
something about it. It’s even led some to
question the role employers play in healthcare

altogether. 

Cigna, one of the largest health insurers in the US, works with
employers to provide health plans for their employees. In a
recent interview,
Business Insider’s Sara Silverstein asked Cigna CEO David
Cordani
if it still makes sense for healthcare to be tied to
employers. 

“An employer actually has a vested interest in helping to keep
their employees healthy, and productive, and present from a work
standpoint,” Cordani said.

To be sure, a big portion of Cordani’s business comes from
employers who in turn provide Cigna plans to their
employees. If employer-funded healthcare stopped being the
norm in the US, that would mean individuals and families would
have to find and pay for health insurance on their own or through
a government program. 

But employers have a way to engage and communicate with people
about healthcare, and provide care, meeting them where they spend
a big chunk of their time, he said.

“We have a ton of bright spots where we could point to employers
that have innovated with us and we’ve innovated with them,”
Cordani said. “And their employees and therefore their business
is better off and those employees family members are better off
because they’re getting better, more comprehensive healthcare.”

See also:


Business Insider Intelligence Exclusive FREE Report: The 5 Ways AI Will Change U.S. Healthcare


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