Cigna health is planning to buy Qualcare, a 25 years old managed care company which is owned by non-profit hospitals. Cigna Health officials say, it will bring more competition in the limited insurance market of New Jersey and will also bring more options for the consumers.
QualCare has almost 800,000 members from local governments, hospitals, unions, schools, large corporations and other small businesses. Qualcare will preserve its name, workers compensations and health insurances. CIGNA Corporation(NYSE:CI) will sell health insurance policies together with QualCare, and imitate its business model to different other states.
Chief executive officer and founder of QualCare, Annette Catino will preserve her title as QualCare is owned by Cigna. This will happen as soon as all the regulatory approvals are met.
Catino said, she believes QualCare will create more jobs in information and technology and customer cares that will offer employees compatible wages. Company’s Egg Harbor satellite office will provide jobs to casino workers, which are jobless because of the closings.
He further said, “Having another Fortune 100 company committing capital resource to NJ is an economic boon,”
President of United States commercial market and international health care operations of Cigna Health, Mr. Matt Manders said, “The Company’s target is to deliver inexpensive solutions to health care problems, in order to provide greater value, experience and health outcomes to its customers”. He further said, “This acquisition of QualCare by Cigna Health is the proof of its continuing commitment to be partner with health care professionals and hospital systems”.
Chairman, Board of Director of QualCare Alliance Networks and chief executive officer of Meridian Health, John K. Lloyd said, QualCare was built to contest with big insurance companies, with a motive of managing people’s health. He further said, “The decision to join Cigna Corp. will guarantee QualCare’s success in this environment and will help to improve the value it can provide to its local society”.
Catino said that by acquiring QualCare, Cigna will be able to increase its presence in the state, which is controlled by few other carriers.
Cigna Corporation stock is up by 2.02%, with share price of $118.54 at market closed on Friday February 20th, with 30-days average volume of 1.42 million shares. The global health insurance company has a 52-week low of $ 73.47 and a 52-week high of $118.61, with market cap of $31.33 billion and price to earnings ratio of 16.20.
Cigna Corporation is an international health service company headquartered in Connecticut and Bloomfield, United States.
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