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Violation Tracker Individual Record

Company: CIGNA HealthCare of New Jersey
Current Parent Company: Cigna
Penalty: $2,123,000
Year: 2007
Date: April 25, 2007
Offense Group: consumer-protection-related offenses
Primary Offense: insurance violation
Violation Description: Order Directing Remediation and Assessing Penalties #A07-34, April 25, 2007; CIGNA began to nonrenew optional benefit riders regarding small employer plans starting July 1, 2006 but the notices issued to employers differed from the specimen notice approved by the Department; CGLI and CIGNA provided small employer groups that were affected by the rider withdrawal with information encouraging them to select a CGLI PPO plan but failed to disclose the availability of a CIGNA HMO or HMO POS plan and did not explain the significant differences in benefits between the standard small employer HMO and HMO POS plans that were issued by CIGNA and the small employer PPO plans offered by CGLI; CGLI was required to make its PPO plan available without restrictive riders but failed to do so in many cases; CIGNA had 1,332 small employer HMO and HMO POS contracts in force as of June 30, 2006, which employers were advised that they only had the option to renew into CGLI, and in addition, as of March 26, 2007, CGLI offered and issued CGLI PPO plans containing restrictive riders to approximately 791 new small employer groups. Order #A07-34 requests remedial relief to restore coverages and benefits to approximately the degree that would have likely existed had CIGNA and CGLI properly made available to employers required options and plan choices.
Level of Government: state
Action Type: agency action
Agency: New Jersey Department of Banking & Insurance
Civil or Criminal Case: civil
Facility State: New Jersey
HQ Country of Current Parent: USA
HQ State of Current Parent: Connecticut
Ownership Structure of Current Parent: publicly traded
Major Industry of Current Parent: healthcare services
Specific Industry of Current Parent: insurance; managed care
Source of Data: (click here)
Source Notes: If an online information source is not working, check the Violation Tracker Data Sources page for an updated link.
Current parent company note: Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.