Political Contributions and Lobbying Activity Report and advocacy efforts, the Company makes...

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  • Political Contributions and Lobbying

    Activity Report

    2014

  • Cigna’s mission is to improve the health, well-being and sense of security of the more than 85 million people we serve around the world. Our focus on affordable and personalized services to our customers is at the center of what we do every day. Over the past several years, in the face of a particularly challenging and dynamic environment, we have been steadfast in our commitment to drive innovation, including new clinical programs, aligned incentives for customers, expanded technologies and programs for health care professionals.

    We believe passionately that Americans deserve a more affordable, personalized and efficient health care system that delivers on its promise to provide a level of care and quality that is commensurate with the billions of health care dollars that are spent in the U.S. every year. We act on this passion by bringing products and services to the market that are personally relevant to individuals and their needs, and by advocating on public policy proposals that can enhance or constrain the system’s ability to meet those needs.

    For example, as pioneers and leaders in the Collaborative Accountable Care (CACs) movement, I’m very proud of how we are redefining the ways health care providers, employers and Cigna can work together. Cigna now has more than 100 collaborative arrangements with provider practices, serving more than 1 million customers. The improved quality outcomes and heightened individual satisfaction embodied in our CACs are examples of how public policies can enable market developments that support an enhanced health care system for all.

    Across our business we operate in an ever-changing market landscape with diverse needs. The complexity of public policy debates relevant across our customers, employers, health care professionals and governments requires active engagement in the public policy arena.

    In that context, I am pleased to share our annual political contributions report to provide transparency and insight into how our mission and strategy guide our constructive engagement in external developments. As part of Cigna’s federal and state lobbying and advocacy efforts, the Company makes political contributions, as allowed by law. Attached you will find the 2014 annual report of the Cigna Political Action Committee. Cigna is committed to transparency about these activities and is providing this report to communicate openly with our shareholders.

    Cigna is fortunate and privileged to have the opportunity to engage in public policy development. The dialogues are ongoing, and our work continues. I’m proud of the commitment and perseverance we demonstrate as an organization to stand firm in our principles, and to remain tireless in our pursuit of public policy developments that drive to a better system for our country.

    David M. Cordani President and Chief Executive Officer

    David M. Cordani President and Chief Executive Officer

    2014 Political Contributions and Lobbying Activity Report • 2

  • Cigna takes its engagement in the legislative, regulatory and public policy areas very

    seriously, approaching all of our efforts with care and integrity. There are two major

    components that comprise Cigna’s major political activity: (1) political contributions

    and (2) lobbying efforts. This report is organized to provide information on both of

    these activities.

    As Cigna engages in political activity, it adheres to strict governance standards

    designed to ensure alignment with Cigna’s mission, vision, strategic goals and

    direction. With respect to political giving activities, all contributions that are made

    directly by the Company must be made in accordance with Cigna’s Political

    Contributions Policy that requires, among other things, oversight of decisions at

    the highest corporate level. Political contributions that are made through Cigna’s

    Political Action Committee (PAC) are reviewed and approved by the CignaPAC

    board, comprised of executive-level Cigna leadership, and in accordance with the

    CignaPAC Contribution Guidelines.

    With respect to the Company’s lobbying activities, the Vice President of Global Public

    Policy and Federal Government Affairs and the Vice President of State Government

    Affairs report directly to the General Counsel and review lobbying efforts with Cigna’s

    enterprise leadership, including the Chief Executive Officer, on a regular basis.

    Additionally, all memberships in trade associations are reviewed by the General

    Counsel and the Chief Executive Officer.

    The Company also maintains an Enterprise Risk Management function. This

    company-wide initiative involves the Board (and its Committees), Cigna’s

    management, Cigna’s Chief Risk Officer and General Auditor and Cigna’s internal

    audit function. Together they work in an integrated effort to (1) identify, assess,

    prioritize and monitor (as each of their roles dictates) a broad range of risks

    (e.g., financial, operational, business, compliance, reputational, governance and

    managerial), and (2) formulate and execute plans to monitor and, to the extent

    possible, mitigate the effect of those risks.

    Within this enterprise risk framework, the Corporate Governance Committee of

    Cigna’s Board of Directors has oversight of and evaluates any material financial,

    legal, reputational or other risks associated with Cigna’s corporate political spending

    and lobbying activities. In addition, the Corporate Governance Committee bi-

    annually reviews compliance with Cigna’s Political Contributions Policy, including the

    contributions made under that policy by the Company during the previous year, and

    annually reviews lobbying expenses and trade association memberships.

    2014 Political Contributions and Lobbying Activity Report • 3

    Overview and Governance

  • Cigna regularly supports federal, state, and local officials, candidates, parties and

    other politically oriented groups and organizations where the Company believes

    it can advance its mission, business objectives and goals, including principles or

    issues that support Cigna’s vision for an empowered health care system. As Cigna

    considers making political contributions, it is always guided by the Company’s

    strategy and mission, demonstrating an eagerness to work with officials of various

    political and philosophical beliefs.

    Contributions attributable to Cigna are made in two ways: (1) direct corporate

    contributions and (2) through CignaPAC. Cigna has strict standards in place

    governing its political giving activity, and all of its contributions are made in

    accordance with applicable state and federal laws. In addition, the Company keeps

    the work of the CignaPAC separate from other Company giving. Accordingly, this

    section of the report provides information specifically regarding Cigna’s direct

    corporate contributions and we have attached a copy of the 2014 CignaPAC report

    for information regarding contributions made through CignaPAC.

    Direct Corporate Contributions

    In certain states, corporations are permitted to contribute to state election campaigns.

    The Cigna Political Contributions Policy authorizes the use of corporate funds for

    state contributions on an exception-only basis, requiring the express approval of the

    General Counsel of the Company after consultation with the Chief Executive Officer.

    In 2014, Cigna made contributions – as detailed in the table on page 6 – to political or-

    ganizations in New York. In addition, in limited instances, corporations can support voter

    referendums and national party committees. In 2014, Cigna made certain non-PAC cor-

    porate contributions – as detailed on page 6 – to each of the Republican and Democratic

    Governors Associations to support advocacy of the Company’s priority issues.

    Corporate Political Contributions Contributions in the State of New York:

    New York State Democratic Assembly Campaign Committee Housekeeping Account

    New York State Senate Republican Campaign Committee Housekeeping Account

    $15,000

    $30,000

    Corporate Contributions to the Following National Party Associations

    Republican Governors Association

    Democratic Governors Association

    $100,000

    $100,000

    2014 Political Contributions and Lobbying Activity Report • 4

    Political Contributions

  • Sustained Lobbying Activity and Priorities

    Cigna engages in lobbying activity to support its position on public policy issues

    within federal and state political, legislative and regulatory environments. The

    Company uses both internal and external resources at the federal and state

    levels, including memberships in trade associations.

    In 2014, Cigna focused its lobbying efforts on initiatives consistent with our

    Go Deep, Go Global, Go Individual strategy. We focused our efforts on

    advancing public policies in support of our global clients’ and customers’

    interests. Such policies include increasing access to affordable health care;

    incentives and information to drive better health care and value-based buying

    decisions; achieving app