CIGNA Finds Employee Absence Lowered by Integrated Program

February 23, 2011 (PLANSPONSOR.com) – An analysis of experiences by customers of CIGNA’s Disability & HealthCare Connect suggests combined medical and disability programs can lower employee absence.

CIGNA’s study found that individuals using CIGNA’s integrated program were absent 20% less than those who had disability coverage alone. If each day of disability costs an employer $159 in direct and indirect costs, a company with 5,000 employees covered with CIGNA medical and disability programs could expect 2,500 fewer days of disability, representing nearly $397,500 in direct cost and productivity savings, the company contends.  

According to a press release, among individuals with an integrated program who do require short-term disability leave, CIGNA’s analysis shows customers required on average 13 fewer days of disability time than those individuals who did not have access to an integrated program. They also experienced an 11% better return-to-work rate than those without the integrated plan.  

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“Reining in costs associated with employee absence is an imperative for employers,” said Mark Marsters, senior vice president, Group Operations for CIGNA, in the announcement.  “CIGNA’s integrated disability and medical programs provide more opportunities to encourage and engage employees to improve their health and reduce disability absence, which benefits the employees as well as their employers.”  

CIGNA’s Disability & Healthcare Connect also integrates with CIGNA’s chronic care program. Customers with specific chronic conditions are provided education and coaching support to help them improve their medical condition.  

More information is at http://www.cigna.com.

TPA Owner Pleads Guilty to Embezzling Retirement Plan Funds

February 23, 2011 (PLANSPONSOR.com) - The third-party administrator to 56 employee benefit plans for companies located throughout Ohio and several other states pleaded guilty to one count of embezzlement of $1 million in assets from 12 retirement plans.

A Department of Labor news release said Rhonda Sue Irvin Cox, owner of Irvin Administrative Solutions LLC, embezzled the assets from the plans between January 2003 and April 2007 while serving as their administrator.  Cox also pleaded guilty to one count of making false statements in documents required under the Employee Retirement Income Security Act (ERISA) to be kept and certified by the plans’ administrator.  

When sentenced, she faces a maximum of five years in prison on each criminal count, a $250,000 fine and a special assessment.  Cox is scheduled to be sentenced on June 1, 2011.   

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“This defendant’s theft of employee benefit assets jeopardized the retirement security of workers covered by these plans.  This crime is particularly egregious in light of the duty of plan officials and service providers to protect plan assets from abuse,” said Phyllis C. Borzi, assistant secretary of the Labor Department’s Employee Benefits Security Administration, in the announcement.

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