Cigna Corp. (CI) has announced a collaborative care initiative with ChoiceHealth. The program, effective Oct 1, will benefit nearly 3,000 individuals covered by a Cigna health plan. Under this coverage, members receive treatment from over 35 primary care doctors who are part of ChoiceHealth in Virginia.

This step is in sync with Cigna’s goal to improve the quality of care and service provided to its customers. Cigna also aims to lower healthcare costs and improve overall value though such programs.

Cigna’s Collaborative Care initiative is similar to an Accountable Care Organization (:ACO). An ACO is a group effort by health care providers that voluntarily form alliances to provide coordinated high quality care to patients.

An ACO is accountable for the quality, cost and overall care offered to members. By focusing on the needs of patients and connecting payments to the service offered, this model intends to improve the health of individuals and communities as well as curtail rising healthcare costs.

Through this program doctors will monitor and coordinate all the aspects of patient care. The patients will get the benefits of the program even as they retain their current physician. The program does not specify any change regarding referrals to specialists. Patients suffering from long-term diseases such as diabetes, heart disease and obesity are the ones who will benefit the most from the initiative.

Cigna's collaborative care initiative will also designate care coordinators who work closely with patients and monitor the services being offered. They will follow up with the patient, sending reminders about screenings required or recommend direct medical help. At the same time, they will educate patients by encouraging them to participate in various health and wellness programs and workshops.

Remuneration to ChoiceHealth’s physicians will be made on the basis of their performance in reducing patients’ health care costs while providing them best service. Additional compensation will be provided in terms of pay for value, which will depend up their ability to meet the targeted level of medical quality and cost.

Some of the largest health insurers in the country, including Humana Inc. (HUM), United Healthcare Group Inc. (UNH) and Aetna Inc. (AET), are also forming ACOs to control costs.

Cigna carries a Zacks Rank #3 (Hold).

Read the Full Research Report on AET
Read the Full Research Report on HUM
Read the Full Research Report on CI
Read the Full Research Report on UNH


Zacks Investment Research