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Cigna Healthcare has appointed longtime benefits industry veteran Paul Virtell to president of supplementary health business, responsible for overall strategy, day-to-day operations and growth of supplementary health business.
The sector is focused on helping customers pay out-of-pocket fees in the event of a serious illness or accident. Supplementary health policies help you pay not only daily expenses, but also out-of-pocket expenses such as out-of-pocket and deductions.
Virtell has brought 25 years of product and leadership experience, most recently serving as Vice President and Chief Product Owner of Prudential Financial. During his tenure, he led the launch of Prudential’s supplementary health products. This includes implementing processes and technical solutions across operations, billing and billing.
What is the impact?
Virtell holds a degree in business administration from Centenary University and is based in New Jersey.
Heather Dlugolenski, senior vice president of US employers strategy at Cigna Healthcare, said he believes Virtell’s expertise will have an immediate impact on the company’s supplementary health operations.
“Our supplementary health businesses leverage health and dental benefits leadership to provide exceptional value by providing innovative and integrated solutions that provide financial protection when you need it most. It is uniquely set up to offer,” she said. “Paul’s leadership will help promote this mission, strengthen our partnership and ensure we continue to be our chosen priority healthcare partner.”
Cigna Healthcare’s supplementary health business manufactures and distributes compensation for accidental injuries, serious illnesses and hospital care.
Virtell said the team’s commitment to care and collaboration attracted them to the role.
“It’s a privilege to step into this role and I want to work with this team as I embrace new opportunities to deliver a simple and seamless customer experience,” he said.
Bigger trends
The move comes weeks after the revenue call that revealed Cigna’s profits hit $1.4 billion and is struggling with rising healthcare costs.
Cigna’s annual profit was $3.4 billion, down from its $5.2 billion profit recorded in 2023. Chairman and CEO David Cordani said rising costs of suspension health care are a major factor in lower performance than expected.
The previously announced sale of its Medicare business to Healthcare Services Corporation (HCSC) is expected to close in the first quarter of this year. There are no funding conditions.
Last year, Cigna signed a decisive agreement to sell Medicare dominance, supplementary benefits, Medicare Part D and Careallies to HCSC for about $3.7 billion. As part of the transaction, Cigna and HCSC agreed to enter into a four-year service agreement where Evernorth will continue to provide pharmacy benefits services to the Medicare business when the transaction closes.
Jeff Lagasse is the editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a publication of HIMSS Media.
