2015 Political Contributions and Lobbying Activity Report
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2015 Political Contributions and Lobbying Activity Report 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. We have demonstrated consistent success in the marketplace because of our unparalleled focus on the customer: we give everyone the innovative, hands-on support they need to help them achieve what matters most to them and make interacting with Cigna easier and on their terms. Over the past several years, in the face of a particularly challenging and dynamic global environment, we remain steadfast in our commitment to bring more choice David M. Cordani and value; helping us meet the unique local market needs through the right balance President and Chief Executive Officer of affordability and personalization. We are effectively executing our strategy and creating value for our customers and clients by leveraging our integrated capabilities that promote health care rather than sick care, and engaging individuals to help them optimize their health and well-being. We will continue to work toward our goal to deliver 90 percent of payments through value-based arrangements and 50 percent of payments through alternative payment models by the end of 2018 Across our portfolio of businesses, we operate in an ever-changing market landscape with diverse needs. The national dialogue on health care impacts our customers, employers, health care professionals and governments and requires active engagement in the public policy arena. With that understanding, 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 2015 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 continues to convene key stakeholders to work toward a sustainable health care system. We must continue to accelerate the transition from yesterday’s view of health insurance as a mechanism for financing the cost of illness to an orientation centered around maintaining and improving the health and wellness of individuals. Over the long term, we believe our approach will promote better health, sustainability, and economic vibrancy, and lower the cost burden on customers as well as employers. 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 more sustainable health care system for our country. David M. Cordani President and Chief Executive Officer 2015 Political Contributions and Lobbying Activity Report • 2 Overview and 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 Governance 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. 2015 Political Contributions and Lobbying Activity Report • 3 Political Cigna regularly supports federal, state, and local officials, candidates, parties and other politically oriented groups and organizations where the Company believes it can advance Contributions its mission, business objectives and goals, including principles or issues that support Cigna’s vision for a sustainable 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 2015 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 2015, Cigna made contributions – as detailed in the table below – to political organizations in New York. In addition, in limited instances, corporations can support voter referendums and national party committees. In 2015, Cigna made certain non-PAC corporate contributions – as detailed below – to each of the Republican and Democratic Governors Associations, and the Republican and Democratic Attorneys General 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 $15,000 Housekeeping Account New York Senate Democratic Committee Housekeeping Account $20,000 New York Senate Republican Campaign Committee Housekeeping Account $15,000 Corporate Contributions to the Following National Party Associations Republican Governors’ Association $100,000 Republican Attorneys General Association $50,000 Democratic Attorneys General Association $50,000 Democratic Governors’ Association $100,000 2015 Political Contributions and Lobbying Activity Report • 4 Lobbying Sustained Lobbying Activity and Priorities Cigna engages in lobbying activity to support its position on public policy issues Activities 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 2015, Cigna focused its lobbying efforts on advancing public policies in support of our global business and our clients’ and customers’ needs and interests. Such policies include increasing access to affordable health care; incentives and information to drive better health care and value-based buying decisions; and marketplace competition to afford consumers a wide range of choices to meet their unique health care needs. A crucial part of our lobbying efforts is sharing the work we do to create a more sustainable health care system by partnering with customer, physician and broker partners. We continue to work toward our goal to deliver 90 percent of payments through value-based arrangements and 50 percent of payments through alternative payment models by the end of 2018. Cigna is a leader in the volume to value transition and is well-positioned to provide meaningful insight