Cigna to Repay State for Dental Plan Commissions

December 8, 2004

Connecticut Attorney General Richard Blumenthal has reached a settlement with Cigna HealthCare regarding repayment of commissions paid in error in connection with the State of Connecticut Employee and Retiree Dental Benefits Plan.

This situation stems from an unintentional payment error and is not a result of ongoing investigations about contingency commissions in Connecticut and around the country, according to Cigna.

Under the terms of the agreement, Cigna said it agreed to reimburse the state for all commissions paid in connection with this account from 1989 to 2004, a total of $481,245. In addition, Cigna has repaid the state approximately $390,000 in interest.

Cigna agreed that the inclusion of any commission in the dental rates was an error its part which entered into its payment process a number of years ago.

As stated in Cigna’s settlement agreement with the state, there
was no intentional misconduct on the part of Cigna or any past or present employees. Cigna said it believes this was an isolated incident.

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