Consumerism:The Employer View

Matt MandersPresident

Customer SegmentsCIGNA HealthCare

● ● ● ● ● ●

FORWARD LOOKING STATEMENTS• CAUTIONARY STATEMENT FOR PURPOSES OF THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995• CIGNA and its representatives may from time to time make written and oral forward-looking statements, including statements contained in press releases, in CIGNA’s filings with the Securities and Exchange

Commission, in its reports to shareholders and in meetings with analysts and investors. Forward-looking statements may contain information about financial prospects, economic conditions, trends and other uncertainties. These forward-looking statements are based on management’s beliefs and assumptions and on information available to management at the time the statements are or were made. Forward-looking statements include but are not limited to the information concerning possible or assumed future business strategies, financing plans, competitive position, potential growth opportunities, potential operating performance improvements, trends, and in particular, CIGNA's cost reduction programs and activities, litigation and other legal matters, operational improvement in the health care operations, and the outlook for CIGNA's full year 2006 and 2007 results and beyond. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words “believe”, “expect”, “plan”, “intend”, “anticipate”, “estimate”, “predict”, “potential”, “may”, “should”, or similar expressions.

• You should not place undue reliance on these forward-looking statements. CIGNA cautions that actual results could differ materially from those that management expects, depending on the outcome of certain factors. Some factors that could cause actual results to differ materially from the forward-looking statements include:

– 1) increased medical costs that are higher than anticipated in establishing premium rates in CIGNA’s health care operations, including increased use and costs of medical services;

– 2) increased medical, administrative, technology or other costs resulting from new legislative and regulatory requirements imposed on CIGNA’s employee benefits businesses;

– 3) challenges and risks associated with implementing the improvement initiatives in the health care operations, the organizational realignment and the reduction of overall CIGNA and health care cost structure, including that operational efficiencies and medical cost benefits do not emerge as expected and that medical membership does not grow as expected;

– 4) risks associated with the amount and timing of gain recognition on the sale of CIGNA's retirement benefits business;– 5) risks associated with pending and potential state and federal class action lawsuits, purported securities class action lawsuits, disputes regarding reinsurance

arrangements, other litigation and regulatory actions challenging CIGNA’s businesses and the outcome of pending government proceedings and federal tax audits;– 6) heightened competition, particularly price competition, which could reduce product margins and constrain growth in CIGNA’s businesses, primarily the health care

business;– 7) significant changes in interest rates; – 8) downgrades in the financial strength ratings of CIGNA’s insurance subsidiaries, which could, among other things, adversely affect new sales and retention of current

business;– 9) limitations on the ability of CIGNA's insurance subsidiaries to dividend capital to the parent company as a result of downgrades in the subsidiaries’ financial strength

ratings, changes in statutory reserve or capital requirements or other financial constraints;– 10) inability of the program adopted by CIGNA to substantially reduce equity market risks for reinsurance contracts that guarantee minimum death benefits under certain

variable annuities (including possible market difficulties in entering into appropriate futures contracts and in matching such contracts to the underlying equity risk); – 11) adjustments to the reserve assumptions (including lapse, partial surrender, mortality, interest rates and volatility) used in estimating CIGNA's liabilities for reinsurance

contracts that guarantee minimum death benefits under certain variable annuities; – 12) adjustments to the assumptions (including annuity election rates and reinsurance recoverables) used in estimating CIGNA’s assets and liabilities for reinsurance

contracts that guarantee minimum income benefits under certain variable annuities;– 13) significant stock market declines, which could, among other things, result in increased pension expenses in CIGNA’s pension plan in future periods and the recognition

of additional pension obligations; – 14) unfavorable claims experience related to workers’ compensation and personal accident exposures of the run-off reinsurance business, including losses attributable to

the inability to recover claims from retrocessionaires;– 15) significant deterioration in economic conditions, which could have an adverse effect on CIGNA’s operations and investments; – 16) changes in federal laws, such as amendments to income tax laws, which could affect the taxation of employer provided benefits, and pension legislation, which could

increase pension cost;– 17) potential public health epidemics and bio-terrorist activity, which could, among other things, cause our covered medical and disability expenses, pharmacy costs and

mortality experience to rise significantly, and cause operational disruption, depending on the severity of the event and number of individuals affected;– 19) risks associated with security or interruption of information systems, which could among other things cause operational disruption– 18) challenges and risks associated with the successful management of CIGNA’s outsourcing projects or key vendors, including the agreement with IBM for provision of

technology infrastructure and related services; and– 20) risk factors detailed in CIGNA's Form 10-Q for the quarter ended September 30, 2006, and Form 10-K for the year ended December 31, 2005, including the Cautionary

Statement in Management’s Discussion and Analysis.• This list of important factors is not intended to be exhaustive. Other sections of the annual report on Form 10-K and our quarterly reports on Form 10-Q, including the “Risk Factors” section and other documents

filed with the Securities and Exchange Commission include both expanded discussion of these factors and additional risk factors and uncertainties that could preclude CIGNA from realizing the forward-looking statements. CIGNA does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

HealthCare Consumerism: General Trends Across Employer Segments

Growing acceptance

Health advocacy

Effective communications

Business fundamentals

Growing Understanding / Acceptance of Consumerism• Continuing trend: More

and more employers understand the promise of consumerism

• Expanding across all segments – but at varying paces

Growing Awareness of Importance of Health Advocacy and Wellness

• More employers recognize the value of keeping employees healthy

• Expect their health and wellness companies to not just administer benefits . . . but also to proactively improve the health of their workforce

LOWER . . . HIGHER . . .

COSTS

MEDICAL UTILIZATION

ABSENTEE RATES

PRODUCTIVITY

EMPLOYEEMORALE

Effective Communication Is Vital

• Easy to use• Understandable• Actionable

Continued Importance of the Fundamentals• Cost: Improve / reduce

health care costs

• Access: Access to broad, quality network of health care providers

• Service: High-quality, consistent service

Unique Employer Trends:National Account Segment

Consumerism Profile• More sophisticated and willing to try

new things• More willing to do full replacements• Offer employees more options• More aggressive consumer

engagement• Second-year employers and

employees “get it”

Multi-site

employers

with more

than 5,000

employees

Unique Employer Trends:Middle Market Segment

Consumerism Profile• Growing interest in CDHPs and in the

value of consumerism• Buying habits governed by broker

community• More employers asking for health

advocacy and wellness programs• Remains very price- and cost-sensitive

Multi-site

employers

with

201 – 5,000

employees;

single-site

employers

with 201+

employees

Unique Employer Trends:Small Business Segment

Consumerism Profile• Remains very price- and cost-sensitive• Use CDHPs primarily to make health

care more affordable for themselves• Tend toward full replacements• Significant effort to educate brokers on

value of consumerism

Employers

with 51-200

employees

Unique Employer Trends:Government Segment

Consumerism Profile• Generally slow to accept consumerism• Continued interest in mobilizing people

to become engaged, efficient consumers – but not necessarily through CDHPs

• Government regulations may stimulate further adoption

Government

entities

(federal,

state, local /

town)

Unique Employer Trends:Taft-Hartley Segment

Consumerism Profile• Increasing desire to improve union

members’ health• Requires simple, easy-to-use benefits

and programs• Emphasis on hands-on engagement

and education

Union-

based

entities

CIGNA’s Competitive Advantages • Industry-leading

consumerism and health advocacy capabilities

• Products and service innovation / integration

• Information management and transparency

• Local market focus backed by national capabilities

• Customer intimacy and consultation

• Delivering on the fundamentals

The Role of Servicein the EvolvingConsumerismMarketplace

Scott StorrerExecutive Vice President

Service Operations & Information Technology

CIGNA Corporation

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Service and Consumerism at CIGNA• CIGNA’s core service

capabilities are strong

• Extending traditional service model to more effectively integrate service and clinical capabilities

• Developing innovative service model of the future to drive advanced capabilities to support consumerism, health advocacy, and the strategic use of information

CIGNA Very Competitive on the Service Fundamentals• Service results exceeding

targets

• J.D. Power and Associates certification

– HealthCare member services call centers certified for providing “An Outstanding Customer Service Experience”

• Six Sigma continuous improvement

• Customer-centric quality programs

For J.D. Power and Associates Certified Call Center ProgramSM information, visit www.jdpower.com.

Culture of Continuous Improvement

ContinuousOperational

Improvement

Quality Improvements

Productivity GainsSelf-Service

Business Process Outsourcing

Technology Enhancements

Driving real operational improvements and financial benefits.

ResourceAlignment

Extending theTraditional Service Model

• Call customer service for questions or complaints (reactionary)

• Lack of understanding of benefits and services

• Challenges around easy access to information

• Difficult to understand health care “big picture”

• Turn questions and complaints into health coaching opportunities

• Proactive and higher touch

• Health advisors

• Information is easy to find and easy to use

• Member understands health care “big picture”

• Tighter integration between service and clinical teams

OLD WORLD . . . NEW WORLD . . .

Extending the Traditional Service Model

• Bridging the gap between traditional service and health advocacy opportunities

• Dedicated CIGNA Choice FundSM service team

• Service strategy placing greater emphasis on automation, self-service, and electronic transactions

SERVICE

HEALTHADVOCACY

COACHABLEMOMENT

Creating the Consumer-Centric Service Model of Tomorrow• Integrating service, health

advocacy, and technology• Innovation lab in Bristol (CT)

– Consumer-centric service model “in action”

– Integration of clinical and service professionals

– Customer-focused work environment

• IBM strategic alliance– Building technology

infrastructure and CRM to deliver on breakout consumer-centric service model

Final Thoughts• Service must be high-touch

and consultative

• Service environment must provide full view of consumer

• New technology is needed to facilitate the union of consumerism, health advocacy, and information and “make it all work”

• A good service experience can be the first step to health improvement

Engaging the Health CareConsumer

Kenneth SperlingSenior Vice President

National Account SegmentCIGNA HealthCare

● ● ● ● ● ●

Evaluating our Capabilities

Structure Process Outcome

“Do you have…?” “Do you do…?” “What happened?”

Answering the Critics• “Consumer-driven health care doesn’t save

any money.”• “It’s just a cost shift.”• “Sick people will be much worse off.”• “If people have to pay for their medications,

they won’t take them.”• “People won’t seek the care they need.”• “No one will use the decision tools.”

CIGNA’s Study Results

Traditional Choice FundMonth 1 12 24

Traditional TraditionalMonth 1 12 24

- compared to -

44 groups

38,211 members

231,680 members

20052004

• Based on discounted charges (before plan design cost sharing)• Excludes outliers (claims > $50,000)• Standardized for differences in claim mix• Claims, clinical quality indicators, and survey data

StudyStudyGroupGroup

ControlControlGroupGroup

Measures the impact of consumerism married with strong health advocacy and actionable information

CIGNA Choice Fund®

vs. Traditional Plan

-16%--16%16%

-29%

-21%

-10%

-11%

-19%

-19%

Claim LevelService TypeInpatient

Outpatient

Professional

Under $1,000

$1,000 - $8,000

Over $8,000

Significant differences in trend across all service types

Behavior change across claim levels—even when the benefit plan had no cost-sharing features

Significant differences in trend across all service types

Behavior change across claim levels—even when the benefit plan had no cost-sharing features

“Consumer-driven health care doesn’t save any money.”

Member Out-of-Pocket Cost

$117 $49

$839 $781

$2,508 $2,536

$591$535

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

Under $1,000 $1,000 - $8,000 Over $8,000 Total

2004 Traditional Plan2005 CIGNA Choice Fund

-$68

+$28

-$58-$56

Choice Fund drove much lower out-of-pocket cost for low utilizers and helped maintain out-of-pocket cost for higher utilizers

Conservative estimate—Does not include reduced payroll contributions or account rollovers (30 – 50% of fund)

Choice Fund drove much lower out-of-pocket cost for low utilizers and helped maintain out-of-pocket cost for higher utilizers

Conservative estimate—Does not include reduced payroll contributions or account rollovers (30 – 50% of fund)

“It’s just a cost shift.”

“Sick people will be much worse off.”

-2.9%

-8.4%

1.8%

-10%

-5%

0%

5%

10%Chg '05 vs. '04

Chronic care Episodic care

Healthy/ Low Cost

Reduced trend for people with chronic or episodic illness drove most of the Choice Fund cost savings

Comparable savings from those who stayed in the same category as well as moved categories from year to year

Reduced trend for people with chronic or episodic illness drove most of the Choice Fund cost savings

Comparable savings from those who stayed in the same category as well as moved categories from year to year

“If people have to pay for their medications, they won’t take them.”

Greater compliance with chronic medications

More discerning in use of medications with OTC alternatives

Greater compliance with chronic medications

More discerning in use of medications with OTC alternatives

5%

-9%

-8%

2%

22%

-15%

-20% -10% 0% 10% 20% 30%

Days Supply Change vs. Prior Year

Pain

Gastrointestinal

Anti-Infectives

Cardiovascular

Respiratory

Medication Days SupplySelect Drug Classes

Antihistamines -13%Asthma-related + 21%

Anti-ulcer - 18%

Migraine - 29%

Penicillin - 8%

ACE/ARB + 10%

Diabetes Hypoglycemic +33%

“People won’t seek the care they need.”

Preventive care visits increased year over yearHigher in Choice Fund than the traditional plan

Preventive care visits increased year over yearHigher in Choice Fund than the traditional plan

368

397

352 354

320

330

340

350

360

370

380

390

400

410

Choice Fund2004

Choice Fund2005

Traditional2004

Traditional2005

Preventive Care Visits CIGNA Choice Fund® vs. Traditional Plans

Prev

entiv

e C

are

Visi

tsPe

r 100

0 M

embe

rs +8.0%

+0.6%

0% 20% 40% 60% 80% 100%

Asthma Inhaler/Steriod

Diabetic HbA1c

Diabetic Retinopathy

Beta Blocker Post MI

LDL Cholesterol Screen

ACE inhibitor forHypertensives

Mammography

CIGNA Choice Fund Traditional Plan

CIGNA Choice Fund members had same or higher compliance on approx. 96% of measures.

CIGNA Choice Fund members had same or higher compliance on approx. 96% of measures.

“No one will use the decision tools.”Would Use Cost and Quality Information to...

(Percent Agreement)

45%

43%

51%

51%

52%

58%

63%

66%

69%

76%

0% 20% 40% 60% 80%

Compare costs for lab tests

Select a doctor for simple health services,like office visits

Select a facility for high-tech radiologyprocedures, like an MRI

Choose where to have an outpatientsurgery, like minor surgery

Select a hospital for an inpatient procedure,like heart surgery

Cost Quality

Members report a willingness to use both quality and cost information to select a provider

Background

Employer Case Study

• 28,000 eligible non-union employees

– Older population– Average tenure 10 to 15 years

• Health care costs significantly impacting margins

• Culture change initiative– Healthier workforce– Enhanced quality of life– Increased productivity– Reduce unnecessary medical

costs

• CIGNA Choice Fund eff. 1/1/2006– Option basis

• Choice Fund Design Strategy– Two HRA options– Contribution advantaged– 100% preventive care coverage

• Health Management Programs– Lifestyle Management– Health Advisor– Disease Management

• Early and frequent communication and engagement

Strategy

-0.4%

15.4%

-5%

0%

5%

10%

15%

20%

CIGNA Choice FundTraditional Plan

Year-over-Year Trend*2Q 2005 vs. 2Q 2006

*Excludes outliers; CIGNA population only

Combined Trend1.5%

79% enrollment in CIGNA Choice Fund®

plans, virtually eliminating annual trend

-37.0%

-1.1%

11.3%

-3.7%

-40%

-32%

-24%

-16%

-8%

0%

8%

16%

Utilization Change2006 vs. 2005

Service mix is less invasive, less intensive, and less costly to both

employer and employee

Inpatient Outpatient

Professional

Other

Lower inpatient admissions and length of stayLower outpatient surgery utilizationFewer emergency room visitsMore physician visits

Lower inpatient admissions and length of stayLower outpatient surgery utilizationFewer emergency room visitsMore physician visits

Health Advocacy Activity – January to June 2006

162Health Information Line

3,237Disease Management

602Case Management

1,540Health Advisor

Participant EngagementsProgram

4,741 Participants =

21.54% Annualized Engagement

Health Advisor Key Interventions180 Medical Director Consultations128 Benefit Counseling240 LifeStyle Management Referrals188 Behavioral Health Actions166 Disability Referrals

Conclusions• Consumerism works

– For the employer as well as the individual• Engaged consumers will make appropriate health

care decisions• Substantially lower cost can be achieved

without sacrificing clinical quality• Outcomes are optimal when

financial incentives are combinedwith strong health advocacyand actionable information

Strategy forGrowthDavid Cordani

PresidentCIGNA HealthCare

● ● ● ● ● ●

Unsustainable Health Care Trend

Medical expense is expected to increase dramatically as a percent of the Gross Domestic Product (GDP) through 2014.

• Percent of GDP spending will increase from 14% in 2002 to nearly 20% in 2015.• The percent of GDP increase for health care is faster than for all other industries.• By 2014, it is expected that the public and private share of medical expense will both

equal approximately 50% of all medical services.

Medical trend as share of GDP

Source: Centers for Medicare and Medicaid Services, Office of the Actuary, National Health Group Statistics; Health Affair and Robert Wood Foundation

0

25%

50%

75%

100%

1965 1980 1990 2000 2003 2008 2014

5%

10%

15%

20%

Share of health expenditure Share of GDP

Private Share of Health Expenditure

Public Share of Health Expenditure

Drivers of Rising Medical Costs

Key drivers of the medical cost trend include:• New medical advances including diagnostic, surgical, rehabilitative, and

pharmaceuticals.• An aging U.S. population utilizing more medical services for a longer period of time.• “Separation” of the consumer from the cost equation in private industry and

government programs.Comparable Increase in Health Premiums, Inflation & Earnings

2000- 20006

Source: U.S. Bureau of Economic Advisors, OECD

Health Premiums

Workers’ EarningsInflation

The Changing Needs of Constituents

Year

Leve

l of C

onsu

mer

Invo

lvem

ent

2000 20082004

Low

High

2006 2010

Market Needs

Employer• Continued shift from defined benefit todefined contribution plans

• Greater reliance on voluntary benefits to address health care needs of uninsuredworkers

Consumer• Increasing need for tools, technology,information to manage health needs

• More focus on preventative care, wellness and chronic care to maintain health

Providers• Need for payment support options• Data management to improve physician/ patient relationship

CIGNA recognizes and is positioned to take advantage of these market changes by supporting the needs of key constituent groups.

CIGNA’s Goals and Objectives

• Pioneering a deeper level of personalization and consumer intimacy

• Delivering integrated care for superior clinical outcomes• Providing the next generation of decision-support tools,

metrics and expert consultation

CIGNA HealthCare’s primary objective is to improve the health and well-being of our members. To accomplish this goal, CIGNA will lead the industry in engaging the consumer in managing their health. This will be attained by:

CIGNA’s Growth Strategy

CIGNA will grow by establishing market leadership in the critical differentiators that will drive growth to both existing employermarkets and to segment expansion opportunities.

Leadership and Execution of CIGNA’s Differentiators across Employer and Other Segments

Consumerism

Health Advocacy

InformaticsCost

Service

Access

2004 – 2006Preparation for Growth

2005 – 2007Marketplace Differentiation

2007 – 2010Market Leadership and

Accelerated Growth

Focus on the foundational assets

Critical Success Factors in a changing Health Care

Environment

New GrowthOpportunities

• Existing Markets• Segment Expansion

Membership and Earnings Growth

CIGNA’s Existing Market Growth

• CIGNA will continue to leverage industry leading Consumerism capabilities to continue growth in National and Middle Market Segments.

• Focus on cross-selling opportunities within segments that will improve earnings per member through Health Advocacy and Specialty products.

1. Excludes all Taft Hartley and Government/School segment members.Competitors generally count Government and Taft-Hartley business as part of National Accounts

GrowthOpportunity

12M29M34M30MProjected

2010Market

Opportunity

Total 2006 Market

Opportunity12M29M34M31M

National Accounts1

CIGNA’s Mature Markets

Middle Market Commercial

Govt/Schools

Taft-Hartley

Applying CIGNA’s Differentiators to Employer Markets

CIGNA’s leverage of fundamentals, and key differentiators have driven growth in the employer markets. CIGNA expects this growth to accelerate in 2007 and beyond.

CIGNA’s Differentiated Portfolio

Core Medical Benefits

CIGNA Choice Fund Behavioral Health

Pharmacy Benefits Wellness ProgramsConsumer Tools

Network & DiscountsCare Management

Health Coaching &Advisory Services

Core Services

Differentiators

SegmentFY '06

EstimateFY '07

EstimateNational - 6% 3%Regional 9% 6% - 8%

Total CHC 1% - 2% 4% - 6%

Segment Expansion Opportunity

• CIGNA will expand membership and earnings growth by adding or enhancing capabilities in Voluntary, Individual, Small Business, and Seniors (Medicare) Markets.

• These markets provide CIGNA with the opportunity to expand from our existing base and increase cross-selling product and service opportunities.

• CIGNA will leverage its core assets and key differentiators to expand into these segments and become a leader in engaging the consumer in their health care.

Figures for Seniors/ Medicare represent those age 65 and older.

GrowthOpportunity

48M50M19M2MProjected

2010Market

Opportunity

Total 2006 Market

Opportunity41M46M17M1M

Voluntary

Segment Expansion Opportunity

Individual SmallGroup

Seniors/Medicare

Voluntary Market Opportunity

• Interest in voluntary health care and disability insurance programs is expected to grow as employers search for ways to stretch benefit dollars.

• CIGNA supports robust Voluntary Benefit plans that can provide integrated solutions to employers.

• Voluntary capabilities improve CIGNA’s ability to penetrate traditional benefit program sales for employers.

• STAR HRG acquisition added 170K voluntary medical members while CIGNA Group Insurance organically launched group voluntary products in 2006.

Current Voluntary Market

Represents existing membership in the Voluntary market dominated by Aetna’s SRC and CIGNA’s STAR HRG. Other represents smaller or secondary carriers.

Other 61%

CIGNA 15%

Aetna 24%

• Acquire Capabilities – STAR HRG

• Expand Portfolio (e.g. Fundamental Care)

• Expand Segments (e.g. Regional Segment)

• Drive increase in penetration

Actions

Individual Market Opportunity

• Growth in individual segment will accelerate as employers reduce coverage.• Individual market today is moving rapidly to Consumer Directed Health Plans.• Individual segment is fragmented.• CIGNA’s value proposition will resonate well with the heterogeneous individual

market purchasers.

WorkingPoor Unemployed Early

RetireeEmployeeIneligible

Sole Proprietor

DependentIneligible

YoungInvincible

Segment

Size 2M 5.1M.4M 2.5M .8M6.1M .2M

Individual Insurance Purchaser

• Dedicated, experienced leadership• Secure infrastructure through acquisition or alliance• Targeted market entry strategy planned for 2007 - 2009

Actions

• Dedicated, experienced leadership

• Secure infrastructure through acquisition or alliance

• Targeted market expansion and entry strategy planned for 2007 - 2009

Small Business Market Opportunity

• Small Group (defined as employers with 2-50 employees) represents a significant growth opportunity for CIGNA today.

• Market is highly fragmented.• Risk products with good packaging.• Continue expansion of CDHP products to meet employer needs.

Graph represents combination of Individual and Small Group (under 50 lives)

Individual/Small Group (Under 50)

CIGNA 1%

Assurant 1%

Other 76%

United 8%

Humana 1%

WellPoint 10%

Aetna 3%

Actions

Seniors Market Opportunity

• Seniors represents the fastest growing segment; early retiree (50-64) and government subsidized retirees (65+).

• Retiree solutions are important to employer sponsored programs.• Range of Medicare product opportunities include HMO, FFS, Medicare Supp

and Part D drug coverage. Opportunities will likely change over time due to economic pressures on Medicare program, but government/private partnership likely to continue.

• Success requires underwriting and federal reimbursement management expertise and strong distribution and medical management capabilities.

The Graying of America

71%64%

7%

6%

6%

6%

4%

6%

3%6%

3%5%

2% 4%2% 2%2% 2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2025

0 - 49 50 - 54 55 - 59 60 - 64 65 - 69 70 - 74 75 - 79 80 - 84 85+

% o

f Tot

al U

.S. P

opul

atio

n

Source: U.S. Census Bureau, Population Projections, 2004 Chapterhouse

CIGNA’s Senior Market Presence

CIGNA currently provides a spectrum of senior care services across the 50+ age group including:

• Hire Experienced Leadership• Expand Employer Sponsored solutions• Grow Part D – Both Employer and Individual• Build/Acquire MA (PFFS & HMO) and Medicare Supplement• Leverage Consumerism and Health Advocacy solutions for Under 65,

Over 65 and Retiree population

Actions

• Medicare Advantage plans to 30K members in Arizona.• Medicare Part D product to over 180K individuals nationwide.• Employer Medicare Wrap (COB) plans that coordinate between Medicare

and Employer sponsored health coverage.• CIGNA Government Services providing Medicare fee for service

management to several geographic locations across the United States.• On-going participation in CMS demonstration projects including disease

management pilots.

Growth through Multiple Products and Services

• Growth of medical membership presents additional cross-selling opportunities in existing markets and through segment expansion for CIGNA.

• CIGNA has been very effective in driving cross-selling during the past several years.

• Consumerism and Health Advocacy presents new “Specialty” opportunities for our existing, as well as new, book of business.

• CIGNA’s cross-selling strategy positions the organization to grow membership and earnings per member through improved “share of wallet.”

• Opportunity exists across all specialty lines and represents further opportunity to integrate CIGNA’s health and wellness capabilities.

Growth through Multiple Products and Services

Dental

DiseaseManagement

Lifestyle/Wellness

Disability

Pharmacy

Behavioral

Coaching Advocate

Life

Accident

Moderate OpportunityHigh Opportunity Low Opportunity

Voluntary Individual SeniorsSmall Group

National Accounts

Regional Segments

• Opportunity exists across all specialty lines and represents further opportunity to integrate CIGNA’s health and wellness capabilities.

Growth through Multiple Products and Services

Dental

DiseaseManagement

Lifestyle/Wellness

Disability

Pharmacy

Behavioral

Coaching Advocate

Life

Accident

Moderate OpportunityHigh Opportunity Low Opportunity

Voluntary Individual SeniorsSmall Group

National Accounts

Regional Segments

Strategic Impact to Growth and Earnings

CIGNA’s membership growth through greater penetration of Employer Segments and Segment Expansion will generate earnings growth for the division.

• Expect to have 4% - 6% 2007 membership growth across both existing and emerging markets.– Take Share

• Top tier competitors• Second tier competitors

• Extension into Voluntary, Individual, Small Business and Senior Segment will be a key contributor to future earnings growth.

• Growing Segments• Highly fragmented• Significant leverage of core capabilities

• Continued cross-selling of Specialty and Health Advocacy capabilities is expected to improve earnings per member.

LearningCenter

● ● ● ● ● ●