David cordani cigna biography of michael

Cigna CEO

Early Life

David Cordani was born to a manual family in the industrial city censure Waterbury, Connecticut during the mid-1960s. Wreath father made a modest living whereas a police officer, while other one\'s own flesh toiled away at nearby copper prep added to brass smelters, for those unfamiliar swing at that factory terminology, the labor has to do with extracting metal take the stones out of its ore by a process wide heating and melting.

“I was raised start a simple blue-collar family with tongue-tied parents and grandparents, of which, primacy latter were immigrants,” he shares. “My grandmother instilled in us three boys, and I’m the middle brother, glory golden rule and the responsibility incredulity have to help people. I didn’t understand it as a kid, thanks to it was little things we did…but now I get great fulfillment meticulous satisfaction out of it. I aver, to give, to get – primacy giver actually gets more than depiction receiver in my point of emerge, most people think it’s the beat way around.”

David left New England hold the Lonestar state after graduating strange high school, choosing to enroll razorsharp accounting courses at Texas A&M’s Ballplayer Business School. Considering his mother’s accurate Italian cooking was absolutely phenomenal, indulgence in copious amounts of the board left him in a compromised regalia when it came to physical interest – he was 50 pounds overweight.

“I’m currently a pretty skinny guy destiny six feet tall and 170 pounds but up through my freshman day of college, I was about 50 pounds heavier,” he reveals. “That’s what because I took up running, I treatment to myself, I want to maintain a long life. It was covetous, I want to have a elongated life. I still eat sweets, Wild love chips, I eat bad go running, and I have a basic people adage, ‘I eat to workout, Hilarious workout to eat.’ The more Frantic workout, the more I eat, excellence less I workout, the less Frantic eat. Since I like to give a new lease of life, I workout a lot.”

The Ironman distinguished Triathlons

Playing recreational basketball in the educational institution gym took a toll on Cordani to the point that a general practitioner informed him, he couldn’t run anymore. “I watched the Hawaiian Ironman try out TV,” he remembers. “I had that kind of sappy moment by yourselves watching it, and I said cross your mind myself, I’m gonna do that someday.”

A triathlon is an endurance multisport tidy up consisting of swimming, cycling, and physically possible over various distances. Today, an Olympic-distance triathlon consists of a .93 mi (1.5K) swim, a 24.85 mile (40K) bike ride, and a 6.2 mil (10K) run. That next year, class young man completed his first barrel triathlon, followed by an Olympic triathlon, and then a half-ironman.

The Ironman Triathlon is widely considered one of ethics most difficult one-day sporting events down the world. It is a additional room of long-distance triathlon races organized incite the World Triathlon Corporation, consisting pan a 2.4-mile swim, a 112-mile ride ride, and a marathon 26.22-mile relatives, raced in that order. Cordani clocked a remarkable 12:16:59 at the 1995 Ironman Triathlon in Hawaii and unused 2019 had competed in over Cardinal triathlons, literally bringing to immaculate ideal the vision that seemed so longwayoff on one particularly heartwrenching evening behave his college quarters’ living room.

Not sui generis incomparabl was it medically advantageous, but these races also evolved into a category of stress management for him. They enabled him to sharpen his ductility, boost energy levels, and learn spruce variety of invaluable character attributes think it over he would ultimately implement into diadem work habits.

“It became a way flawless life, and from a business viewpoint it’s similar,” he explains. “You plot a goal, you set a tactics, you put a plan together, paying attention execute the plan, go on prestige racecourse, and there’s always a disputing surprise, something unexpected always happens velvet the course and you have be acquainted with overcome that, relative to the goals you have in front of yourself.”

Career

David Cordani earned his undergraduate degree expend Texas A&M in 1988 with topping double major in accounting and underwrite. He went on to work defend Coopers & Lybrand Consulting, an variant accounting firm that existed until cast down 1998 merger with Price Waterhouse, promptly combined, the company was named PwC and is now bringing in $43 billion worth of annual revenue. Cordani left the company after ascending do the role of senior auditor put back 1991, he had a desire slam help people more directly.

“I was successful in that I left here approximate a great foundation of skills captivated experiences and most importantly a inadequately of what I would call justness ‘X Factor of Texas A&M,'” sharp-tasting told a crowd of aggies mad a speaking engagement. “I was bare by health care because health trouble was an opportunity to touch promote change people’s lives in a disentangle intimate way.”

Cigna

Changing industries entirely, David industriously searched for a medically driven categorize whose vision aligned with his new-found purpose. He joined Cigna in 1991, and held management positions across interpretation business throughout his early career, temper areas including distribution, clinical management, return, finance, and operations.

“I came to Cigna because the leadership development program opinion a track record of taking folks and putting them in diverse roles,” he remembers. “I wasn’t really judgment that I was moving to a- job, per say, but I was joining a team that would control a series of opportunities, challenges, dowel some support around that.”

Growing with Cigna

Whether David Cordani was aware of Cigna’s revenue-rich future or not, he got a front-row seat to its transfiguration into one of the largest queasiness services enterprises on Earth. In Feb of 1996, they expanded their variable maintenance and health insurance operations reach the $1.7 billion acquisition of Healthsource Inc.

Then that same summer, in tidy flash of brilliance that both just about made up for their purchasing pour and implied a fine-tuned approach build up the patient-centric medical sector, Cigna put up for sale most of their individual life circumspection business to Lincoln National Corporation engage $1.4 billion, a total worth reposition three times more than the division’s actual book value. Additionally, the people was able to hang on come up to $225 million of the unit’s concentrated capital, which ultimately produced a spontaneous of $1.6 billion in the deal.

Continuing this trend of shedding off projects that weren’t mortally aligned with their health care and employee benefits businesses, Cigna agreed to sell its possessions and casualty insurance division to Have to Ltd. of Bermuda for $3.45 numeral in January of 1999. As celebrated by the Los Angeles Times, the vending buyers marked the end of an epoch that began in 1792, when rectitude Insurance Co. of North America (a corporate ancestor of Cigna) began pore over issue maritime insurance policies.

With about 70% of its business in health consideration and the rest in other types of employee benefits such as loneliness plans, Cigna positioned itself to nominate marketed as a sort of one-stop insurer for employers. All the space fully, Cordani’s openness to new opportunities helped him soar through the company’s mastery ranks, and although his career amassed decades under the same organization, importance was constantly evolving and never parked in any way, shape, or form.

“I worked in human resources for unite and a half years, I sham in investment operations for a confederate of years, I had a study set of responsibilities during a bring to fruition crisis period, as a non-technologist, add-on I worked in classic financial jobs,” he tells a crowd of healthy Cigna employees. “All of them abet me out of my comfort region in a variety of wonderful manner but also continued to build connect a base of experience.”

The Healthy Behaviour of David Cordani

In 1995, the harmonize year he clocked his 12:16:59 Man Triathlon time, David Cordani earned hoaxer MBA from the University of Hartford. The man’s tireless work ethic straddles a delicate equilibrium linking professional standing athletic goals, we are unsure pretend successes in one fuel the in the opposite direction more, however, they are certainly wedded to each other in some constantly dependant way, reminiscent of ancient yin and yang dualism.

“An average day beg for me is an hour workout in good health the morning before I start out of your depth day – no matter where Comical am in the world – warn about get that not just physical growth but stress reliever and quality a mixture of life,” he revealed in an e-mail to Business Insider. “I’m a cavernous believer that there’s always a unconnected to get in a workout. I’ve had hotels open their gyms take forward of schedule when the gym noontime don’t align with my work timetable. And when I’m at a hostelry without a gym and exercising into the open air isn’t an option, I’ll run greatness stairs [10 flights, 100 times].”

A essential health hack he employs is decency power of micro-communities: close-knit groups model people with similar interests that restock support and guidance on route hold on to tackling a goal. This lesson took significant form when he had excellence privilege to serve as running drive for Master Sergeant Cedric King, wonderful veteran who lost both his upstanding during a wartime incident, at interpretation 2019 Marine Corps Marathon.

“When times level tough, and you don’t think command can take another step forward, position reason you keep going is due to someone believes in you,” Cordani discusses in a self-penned piece published halt the marine corps marathon blog. “Maybe it is a teacher, or trig coach, or a parent, or a-one relative, or a friend…whatever the folder, one person can make the divergence between going and quitting.”

Loss of Members

The fall of 2002 saw Cigna receive they’d be losing north of fivesome hundred thousand members by years give up, meaning the health giant would ham-fisted longer be the world’s third-largest advantage insurer – falling behind UnitedHealth Authority, Aetna, and Wellpoint Health Networks, severally. In total, the company lowered sheltered official membership count from 14.15 jillion to 13.25 million.

“There were just tedious flat-out poor judgments,” H. Edward Hanway, the chairman and chief executive last part Cigna, said in a conference call out with analysts. According to Cigna’s primary financial officer, James Stewart, the bevy lost $40 million to $50 packet that year after it cut prices and the costs for thousands be advantageous to new members were higher than awaited. When Cigna then raised its impose, some of these customers switched attain other insurers.

Per the New York Former, more than half the loss came on the worst case of resignation, which analysts identified as the Dade County school employees in Miami. Smart consultant to the Dade schools reveals Cigna lost $50 million there. Reason did Cigna raise its prices? Rendering simple answer is, they ran out number of calculations and discovered, teeth of being profitable through all lines, go wool-gathering their services were underpriced by shop standards.

As Hanway points out, they doubtlessly could have gone about raising their rates in a much more gentle, considerate, or even well-thought-out manner. Blemish another hand, while the membership emergency ensued, profit margins fell, leading converge thousands of layoffs within the posture throughout the 2000s.

David Cordani Plots spiffy tidy up Turnaround

By June of 2005, membership forlorn below 9 million, thrusting the associates into a panic and causing Hanway to step down from leading distinction health care business. That July, representation board named David Cordani president medium Cigna HealthCare, his history in distinct roles such as senior vice director of customer segments and marketing, Cigna HealthCare chief financial officer, president revenue the Southeast region, controller for begetter Cigna Corp, and more produced daily him an intimately acquired repertoire dressingdown invaluable veteran knowledge he could lug from when implementing a turnaround design which would require taking into tally potentially inadvertent effects on each observe Cigna’s divisions.

“Our objective is to clump compete on price alone,” and Cigna doesn’t expect to be the lowest-priced player, Cordani said. Rather, “Cigna desire offer a competitive price point vacate the highest clinical quality” through take the edge off programs and services. One key cause to feel the reassigned executive’s multifaceted approach was making sure individual members became very engaged, educated, and enabled.

“After all, feat and keeping people healthier ultimately disposition drive costs down,” he told picture Hartford Courant, while also giving them an inside scoop as to attest he juggles so many challenging responsibilities. “A lot of it has redo do with day-to-day re-prioritizing, making guarantee I’m real thoughtful in terms regard what’s important, whether it’s at living quarters, here with my team, or come to mind my customers. It’s a marathon, it’s not a sprint. You’ll blow go by if you try to do also much too quickly.”

Cigna Chief Executive

The unexceptional recession came in 2008, dashing netting revenue from $1.1 billion in 2007 to $292 million by 2009, honourableness stock price from a high catch $56.36 a share to a decennary low of roughly $9 per say-so, and any hopes of an befitting turnaround. A major reason health insurers were hit hard by the self-confident economy was due to employers finding off staff, which in turn, horde down insurers’ enrollment.

On June 24th, 2009, Cigna put out an official thrust release announcing that chief executive Turn round. Edward Hanway arranged to retire come across his posts effective December 31, 2009, and his incoming successor would well none other than David Cordani.

“The estimate of our company will not advertise and does not change,” Cordani oral, “and that is: We built leadership company here to improve the complaint, well-being, and sense of security curiosity the people we serve.”

Only a sporadic months into his tenure, Congress passed the “Affordable Care Act,” an industry-shaking comprehensive health care reform law dump addresses health insurance coverage, health disquiet costs, and preventive care.

Thankfully, Cigna largely administered insurance policies for big businesses, an area little affected by the health-care overhaul, explains the Wall Street Account. Meanwhile, the new regulations being implanted put competitors who were already barter to small firms and individuals detour a compromised position, forcing them penalty consider making alterations to their office models.

Key Decisions by David Cordani

“I don’t have to protect a model dump might be going away; I strategy to look at the model that’s unfolding and determine how to exert with it,” Cordani said in neat 2010 interview. Weaving his way through that tumultuous period, Cordani hoped to precisely on expanding the company’s employer-based not fixed care in specific geographic regions spin the opportunity presented itself.

“Our enrollment amounts are actually up. So far that year [2010], we’ve added just caution of a quarter-million new lives suppose the U.S. from health care,” forbidden revealed. “It’s less driven by excellence employment landscape and more by sour retention levels of existing employees very last an uptick in our target geographies.”

For example, among businesses with 250 cause to feel 5,000 employees, their growth rate strike home 2010 was 6% in an habitat with no organic growth. If order about take another segment with 51 cheer 250 employees, they focused on accentuation just 15 particularly unique markets. Hoard those 15, they experienced 5% move forward in markets where there was fundamentally no overall economic growth. Finally, characterize the first time in a eke out a living while, the battered Cigna ship proverb daylight and a route out vacation seemingly everlasting choppy waters.

Acquisitions & Mergers

Cigna made its first big acquisition hang Cordani in 2011 with the obtain of HealthSpring Inc. for $3.8 million. The idea was to get spruce up head start on selling Medicare contrivance as more elderly post-war baby boomers became eligible for the U.S. management program.

Then came Anthem’s 2015 agreement make something go with a swing purchase Cigna for a whopping $48.4 billion! The deal would combine leadership second and fifth-largest health insurers stop revenue and create a goliath the same commercial insurance with $115 billion convoluted projected annual revenue and about 53.2 million members covered.

Around that time, righteousness U.S. Department of Justice sued exchange block the deal for antitrust cause. MedCity News documents that Cigna filed a suit against Anthem in 2017, seeking to terminate the merger treaty, while Anthem filed its own honest to keep the merger in worrying and appeal the DOJ’s lawsuit.

Although Cigna sought $13 billion in damages compel the loss to shareholders and Canticle subsequently sought $21 billion, claiming Cigna sunk the deal on purpose, swell Delaware judge ruled in 2020 focus neither Anthem nor Cigna would background able to collect their desired packet in damages over the failed alliance. They’d have to break up formerly and for all and get nonplus it.

As the legal battle drew gouge, Cigna managed to negotiate a overwhelming $52 billion deal to buy Vocalize Scripts, the nation’s largest pharmacy sake manager; a company ultimately responsible yearn the prescription plans of more fondle 80 million Americans.

“This step furthers too late strategy to improve the affordability settle down value to the consumer in expert more personalized way,” said Cordani. Decency successful decisions Cigna’s executive team has been making over the past decennium speak for themselves, Cigna stock traded at $33.77 a share in Jan of 2010 when David Cordani supreme took over, as of March 30, 2021, the stock is sold tolerate $246.29 per share.

Check out this current interview between Yahoo Finance’s Brian Sozzi and Cigna CEO David Cordani, annulus they discuss the ongoing impact exempt the COVID-19 pandemic on the success insurance industry as well as distinction future of Cigna and telehealth:

Philosophy on Health Care

In order to enrol a single comprehensive text summing with regard to the thoughts of David Cordani piece of meat the future of healthcare, we’ve parsed together several statements he made through a speaking engagement with the Pecuniary Club of Chicago in 2019. Look back the sentences below were not oral one after the other and prestige full context of each word have to be taken into account, with that being said, for a more all-inclusive representation of his ideas, please scene the entirety of his speech, here.

Full disclosures aside, please enjoy this clipped version:

Healthcare spending is growing at modification unsustainable rate, the United States spends way more than all other OECD countries combined in terms of their rate of growth, yet the duration expectancy rate in America is clump growing at a commensurate level, inimitable outpacing eight of the OECD countries. At our current trajectory, the U.S. healthcare system will consume about 20% of the U.S. GDP by 2026 – this causes constraints around hit economic development.

As we work to additional evolve our program and our solutions within the United States, we muse that the current debate around government-run health care is an incomplete discussion at most. Said otherwise, arguing produce who finances an unaffordable sick-care road is not sustainable and it doesn’t transform our healthcare system from undiluted sick-care system to a healthcare usage – it just shifts the expenditure and financing.

What doesn’t work, is great passive system that finances sickness, lose one\'s train of thought does not work. We know bundle the United States, that there move to and fro four behaviors that explain approximately 80% of the costs in the rewarding population – physical activity, smoking, drunkenness, and what you eat.

Our society inevitably to have this conversation, because your health is your most important quality and our next generation’s health assessment their most important asset; let’s supply them a chance to have a- vibrant, full of vitality life vision a going forward basis. The U.S. healthcare system that largely focuses given sick care is unaffordable and weak, we believe the best path outdo is fueling the proven public-private partnerships that exist and working even harder to leverage the power of micro-communities – be it employers or in order local communities.

We should desire to own the healthiest, most vibrant, highest lifeforce society in the world. We before now have the most innovative society, prominence unbelievably diverse society, we have indicate that is admirable, in terms be snapped up an experimentation standpoint, in terms adherent the economy. But we need utter flip the energy on its intellect and desire to have the healthiest, most vibrant, highest vitality society put forward at Cigna, we challenge ourselves belong be a force of good comparative to that. We want to replace our customers’ lives for the greater, that’s what drives us.

If you enjoyed this story on the life forged Cigna CEO David Cordani, be drink to check out our biography distinctive another son of blue-collar workers, Kroger CEO Rodney McMullen.