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Customer Service And Claims Essay

Cigna Tech Cigna is an insurance company in the United States that has faced its share of financial hard times due to the increased government regulatory environment and competition from its competitors. Although the company is the fourth largest insurer in the United States, it has faced its share of financial difficulties. In 2002 the company reported a $500 million dollar net loss for the year which resulted in a 40% drop in equity value. The company stock was not the only thing getting hammered that year, the company was also under pressure from doctors who were suing the company due to late reimbursements.

The problem facing Cigna was a threefold dilemma. First of all, was the above mentioned lawsuit by doctors who contended that Cigna was purposefully withholding and/or delaying payments for reimbursements and patient care. The doctors were not at all happy with Cigna (and other insurers) accusing the insurance companies of deliberate misconduct regarding the payment of claims.

Secondly, Cigna's sales personnel had made a number of promises to clients regarding the implementation of new technology that would vastly increase customer service and accessibility to data. The need for this...

The new EC system would not only provide improved customer service but would also supply customers with up-to-date information and tracking services. The problem was that the sales personnel had made promises that were not being kept. The system had yet to be developed, and Cigna was under pressure to complete the system's implementation.
Last but not least were the company's stock and financial woes. The company had posted disappointing earnings, huge losses, high expenses and lower revenues. Cigna executives were anxiously awaiting the implementation of the new technology since it promised effective cost reductions and corresponding productivity gains.

The Solution

To solve Cigna's technology problem a solution was proposed that took a two-pronged approach. Cigna wished to update and consolidate its Information Technology (IT) systems and in order to do so wished to create a system that would allow for customers to receive one bill for medical services that was processed in a timely and efficient manner. Claims would be processed in a more timely fashion and customers would be able to track the claim from submission through payment. Customer service representatives would be capable of viewing the claims and the claims would be unified with…

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