Your story titled “Bottom line fuzzy on Illinois’ HMOs” (Business, Nov. 25), which reported on a recent study released by the Illinois State Medical Society, contained significant factual inaccuracies regarding CIGNA HealthCare of St. Louis.
Due to a lack of coordination of the data analysis and a breakdown in communication with the medical society, we did not receive an opportunity to verify the information on our health plan contained in the study prior to its release.
Using information filed with the Illinois Department of Insurance by all HMOs, the medical society’s study suggested that in 1995 our health plan had the highest profit per member of any HMO in the state ($387 per member), and that we spent 47 cents of every premium dollar on medical care and 37.03 cents on administrative costs. Unfortunately, this analysis is grossly inaccurate and ended up reflecting results opposite of the actual.
For the record, in 1995 our health plan sent 85.5 percent of premium income on medical care and only 12.5 percent on administration, giving us a profit averaging 5 percent or $56 per patient. This reflects a solid record of member service, provider service and business performance.
