CIGNA Group Insurance Enhances Its Family and Medical Leave (FMLA) Services, Making It Easier for Employers to Report, Track and Manage Leave in Conjunction With Disability

PHILADELPHIA, September 15, 2005 - Introduced in 1993, the Family Medical Leave Act (FMLA) was designed to provide job protection and peace of mind for employees who desire extended time off from work to attend to a medical or family issue. However, for employers, FMLA has created numerous administrative headaches as companies struggle to manage the many complexities of the law. In a 2001 HRnext.com study, more than half of Human Resource executives surveyed ranked FMLA as their biggest regulatory concern, above Affirmative Action and the Americans with Disabilities Act.

To help employers better manage FMLA compliance and reduce their administrative burden, CIGNA Group Insurance recently enhanced its FMLA services, which integrate with the company's short-term disability (STD) coverage, making the program more attractive and more widely available to employers. Along with integrating overlapping STD and FMLA absences, employers can administer various leaves of absence through CIGNA. Customers will now enjoy these new FMLA service enhancements:

• Increased Availability - Services extended to employers with as few as 500 employees and for employers with STD programs that cover partial employee populations
• No additional costs - To support jury, military and bereavement leaves
• Expanded Entitlement for Domestic Partners - Available at no extra cost for employers who want to align their leave policies with benefit programs offering domestic partner coverage
• Simpler Claim Intake - One toll-free number and FMLA leave and STD claims can now be reported simultaneously online, further simplifying the process
• Quick Implementation - 90 days for standard offering; no implementation fees

CIGNA continues to offer its FMLA services through SHPS, a leader in FMLA administration. "Our partnership lets us put dedicated expert resources for FMLA and STD to work where they're needed most," says Jacqueline Hennessy director, CIGNA product development. "Compliance with the law is never compromised by competing priorities or focus, and we ensure that federal and state laws are consistently applied to every leave. SHPS has the track record, knowledge and technology to manage the law's many complexities, allowing our disability case managers to focus on what they do best: returning employees safely to work."

What Is FMLA and what makes it so complicated?

FMLA provides employees up to 12 weeks of unpaid leave a year to care for a newborn or adopted child, an ailing parent or immediate family member, or for a serious personal or family health condition. Thirty-five million people have taken FMLA leave since the law was enacted.* As the workforce ages, it's estimated that nearly 30 percent of FMLA leaves will come from Baby Boomers taking time off to care for their parents. **

With 24 states currently having leave laws that enhance federal provisions, companies with employees in multiple states have an especially hard time managing FMLA. "Administering the nuances of the law are difficult, and most employers don't have the expertise or staff to manage this," says Hennessy. "For example, definitions of a serious health condition can be interpreted differently. Employers have to track all leaves, and they have to ensure that they have communicated the program and are treating all employees consistently and fairly. And, if employers want to have the most impact on reducing lost time, they should be sure their STD and FMLA programs are jointly administered."

The law allows employers to concurrently count STD, which accounts for up to 80 percent of all FMLA leaves, as part of FMLA. "But not all employers do that," she notes. "An integrated program helps employers to start counting that leave as soon as possible, so they can improve productivity by reducing additional leave taken after employees have exhausted their paid time off."

How CIGNA's FMLA Services Helps Employees and Employers

CIGNA provides ease of use for employees and supports employers' compliance with FMLA in several ways:
 

• One toll-free number for employees to call for STD, FMLA, or both 24-hour web access to request leaves, obtain status and reports regarding FMLA regulations
• Medical information submitted once. STD approval serves as proxy for FMLA leave when eligibility is met
• Targeted expertise and resources applied to FMLA and STD concurrently throughout the absence
• Consistent leave administration and clear communication regarding employee rights and time available under FMLA, supporting a company's compliance efforts and eliminating confusion
• Confidential treatment of all employee information, while keeping managers "in the loop" through automated e-mail communications throughout the leave

"As companies continue do more with fewer people, including fewer benefits staff, they need expert resources, particularly for complex administrative tasks, to ensure that leaves are appropriately tracked and employees are satisfied with how their absences are handled," Hennessy says.

About CIGNA

CIGNA Corporation (NYSE:CI) and its subsidiaries are major providers of employee benefits offered through the workplace, including health care products and services, group life, accident and disability insurance. CIGNA Group Insurance is a leader in disability insurance with solutions that focus on returning employees to a productive working life as quickly and safely as possible. For more information, visit: http://www.cigna.com/.

About SHPS

SHPS provides consumers and corporations a single source of health management decision guidance through its Integrated Health Management approach. SHPS serves employers, health plans, hospitals and governments, and has more than 85 Fortune 500 clients. The company employs more than 2,200 nurses and health professionals, employee benefit specialists and IT experts in facilities across the United States.
Visit: http://www.shps.com/

* U.S. Department of Labor
** 2000 Washington Business Group on Health Conference & Exhibit Issue

Contact:

Ruth Stoolman of CIGNA Group Insurance
215-761-7152
[email protected]
Web site: http://www.shps.com/
Web site: http://www.cigna.com/