QualCare bought by Cigna

Jan. 27--The company that administers health insurance plans for CentraState Healthcare System and the Employers Association of New Jersey has been acquired by Cigna.

QualCare Alliance Networks Inc.'s executives said Monday that the deal would help the company expand its blueprint -- working with hospitals to provide better value -- nationwide.

"The era of providers relying on volume of care and illness is over," said John K. Lloyd, chairman of QualCare and chief executive officer of Meridian Health. "The future is one of serving local communities and focusing on wellness."

Piscataway-based QualCare is owned by 16 nonprofit hospitals and physician-hospital organizations. It has 200,000 customers who participate in self-funded insurance plans.

More employers at the Shore are becoming familiar with the company. CentraState and the EANJ, a trade group, set up their own insurance plans that QualCare administers. They allowing small employers to pool their money together to pay for claims. The organizations touted it as a new model in which providers are rewarded for delivering better -- and less expensive -- care.

Bloomfield, Connecticut-based Cigna didn't disclose how much it is paying for QualCare. The deal is expected to close in the first quarter.

Michael L. Diamond; 732-643-4038; [email protected]

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