At first of 2021, insurance coverage large New York Life accomplished its 2020 buy of CIGNA’s group life, accident, and incapacity enterprise for $6.3. billion, including 9 million clients and creating a brand new entity: New York Life Group Profit Options. The transaction closed in early January and shortly thereafter, CIGNA incapacity policyowners started receiving correspondence from New York Life representatives Frankel & Newfield has labored with many New York Life claims adjusters and attorneys in issues relating to New York Life’s incapacity insurance policies, so we have now expertise with how this firm maintains management of incapacity claims. We discovered it attention-grabbing to see the president of New York Life on social media in January, making it clear that the corporate’s chief curiosity within the transaction was the group incapacity insurance coverage market.
In case you personal a Cigna incapacity coverage, or have group protection by way of your employment with CIGNA or LINA (Life Insurance coverage Firm of North America), and are involved about how this alteration might have an effect on your advantages or your coverage dispute, please name our workplace at 877-583-2524 to talk with an skilled incapacity legal professional. New York Life, the biggest mutual life insurance coverage firm within the nation, has offered LINA incapacity insurance coverage insurance policies by way of giant skilled associations for a few years, and as such has a deep understanding of incapacity insurance coverage as a revenue heart.
The acquisition brings Cigna’s 3,000 staff, about 9 million incapacity plan policyholders, a 90% shopper retention fee and a 71% return-to-work fee for workers receiving brief time period incapacity insurance coverage advantages, in response to a latest article on Think Advisor. Our expertise with New York Life consists of battling for claimants whose affiliation incapacity insurance coverage insurance policies have been denied for a wide range of causes, and we have now little doubt that New York Life will translate the identical methods to their new Cigna-acquired claimants. The acquisition isn’t the top of the partnership. The 2 giants have additionally entered right into a multi-year collaboration that may mix well being protection with different sorts of group advantages. Individuals who have their medical insurance by way of Cigna are more likely to be focused prospects for different insurance coverage companies. New York Life insurance coverage firm is the biggest mutual life insurance coverage in america, and New York Life Group Profit Options services are offered solely by or by way of Life Insurance coverage Firm of North America (“LINA”) or Cigna Life Insurance coverage Firm of New York (New York, NY) (“CLICNY”), or by or by way of associates or subsidiaries of Cigna Company and reinsured by LINA. Business media studies Cigna’s purpose for the transaction was to help its shift to rising well being advantages and companies areas following the acquisition of Categorical Scripts in 2018. The corporate wished a considerable infusion of money to develop the Medicare Benefit space within the face of steep competitors from corporations together with UnitedHealth Group, Anthem, Humana, and CVS Well being’s Aetna, who’re additionally concentrating on this space. An analogous acquisition occurred in 2017, when Aetna offered its life and incapacity enterprise to The Hartford Group for $1.45 billion in money. Frankel & Newfield represented many claimants who had a incapacity insurance coverage coverage with one firm, solely to search out themselves insured by one other firm whose first precedence is to scrub home and maximize income following the sale. In case you had been a Cigna incapacity insurance coverage coverage proprietor and are involved about how the acquisition by New York Life might influence your advantages, contact the agency at 877-583-2524.
