Eye 3 Yellow 3d 2 new logo Philly_KYW_new Philly_94WIP_new CBS Sports Radio 610 Philly_WPHT_new

Latest News

Delaware Cigna Corp. Threatening Massive Layoffs If Not Exempt From New Federal Health Care Laws

View Comments

CBS Philly (con't)

Affordable Care Act Updates: CBSPhilly.com/ACA

Health News & Information: CBSPhilly.com/Health

Get Breaking News First

Receive News, Politics, and Entertainment Headlines Each Morning.
Sign Up
Check Out

WILMINGTON, Del. (AP) – Delaware officials say health insurance company Cigna Corp. is threatening 500 layoffs in the state to press for an exemption from new rules in the federal health care law.

Delaware Gov. Jack Markell’s administration says it’s working on a fix for Philadelphia-based Cigna. The threat comes months after Markell’s administration provided $2.4 million in grants to keep those Cigna employees in Delaware.

Cigna is trying to protect its business that sells insurance policies to businesses with employees based overseas. The company argues the international business should be exempted from new rules that require insurance companies to spend at least 80 cents of every premium dollar on health care, rather than marketing or profits.

Cigna says its administrative costs to market international plans are higher. It is seeking a permanent exemption.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

View Comments