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