Cigna taps Paul Virtell to lead supplemental health business

Cigna Healthcare has named longtime benefits industry veteran Paul Virtell as president of its Supplemental Health business, where he will be responsible for the overall strategy, daily operations, and growth of the supplemental health business.

The sector is focused on helping customers pay for out-of-pocket expenses when a serious illness or accident occurs. Supplemental health policies help pay for out-of-pocket medical expenses such as copays and deductibles, as well as everyday expenses.

Virtell brings 25 years of product and leadership experience, most recently serving as vice president and chief product owner at Prudential Financial. During his tenure, he led Prudential’s launch of supplemental health products, which included the implementation of process and technology solutions across operations, billing and claims. 

WHAT’S THE IMPACT

Virtell holds a degree in Business Administration from Centenary University and is based in New Jersey.

Heather Dlugolenski, senior vice president, U.S. Employer strategy officer, Cigna Healthcare, said Virtell’s expertise poised him to have an immediate impact on the company’s supplemental health business.

“Our Supplemental Health business is uniquely positioned to deliver exceptional value by leveraging our leadership in medical and dental benefits to offer innovative, integrated solutions that provide financial protection when it’s needed most,” she said. “Paul’s leadership will be instrumental in advancing this mission, strengthening our partnerships, and ensuring we continue to be the preferred healthcare partner of choice.”

Cigna Healthcare’s Supplemental Health business manufactures and distributes accidental injury, critical Illness and hospital care coverage. 

Virtell said he was attracted to the role by the team’s dedication to care and collaboration.

“It’s a privilege to step into this role, and I’m eager to work alongside this team as we embrace new opportunities to deliver a simple and more seamless customer experience,” he said.

THE LARGER TREND

The move comes weeks after an earnings call revealing Cigna’s profits took a hit in Q4, reaching $1.4 billion, while it struggled with elevated medical costs.

Cigna’s profits for the year were $3.4 billion, a decrease from the $5.2 billion in profit logged in 2023. Chairman and CEO David Cordani said higher stop-loss medical costs were the primary factor in the company’s lower-than-expected performance.

The previously announced divestiture of the Company’s Medicare businesses to Health Care Service Corporation (HCSC) is expected to close in the first quarter of this year. There is no financing condition.

Last year Cigna entered into a definitive agreement to sell its Medicare Advantage, Supplemental Benefits, Medicare Part D and CareAllies businesses to HCSC for about $3.7 billion. As part of the transaction, Cigna and HCSC have agreed to enter into a four-year services agreement under which Evernorth will continue to provide pharmacy benefit services to the Medicare businesses when the transaction closes.

Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.