Sen. Kissel: Math Not Adding Up in Cigna Deal; Will Call for Investigation

November 2, 2012

Sen. John A. Kissel, who voted against the ‘First Five’ bill, today issued the following statement on the news that Cigna will be laying off 200 employees:

“Last year, as a result of the passage of the ‘First Five’ bill, state officials cut a deal with Cigna. The company would receive $47 million of our tax money in exchange for creating at least 200 new positions.

“We later learned that to reach the ‘200 new jobs’ requirement, the deal allows Cigna to count security guards, landscapers, caterers and other contracted workers. Under the deal, not all of those jobs have to be on the Cigna payroll, and the workers do not have to live in the state or work more than three weeks a month to qualify as an employee for counting purposes.

“This past week, Cigna announced that its quarterly profit more than doubled, prompting the company to raise its full-year profit outlook for the third time this year. Premium and fees revenue at its health care segment jumped 51 percent. Then came the kicker: Cigna announced it is getting rid of 1300 jobs, including 200 jobs in Connecticut.

“Consider that for a moment. Cigna’s profits are going up, they are getting huge taxpayer subsidies and they are still laying off people in Connecticut.

“The math does not add up, and it’s the result of a corporate welfare bill that was passed last year to benefit a select few huge multinational companies. Apparently, we had to pass the ‘First Five’ bill in order to find out what was in it.

“This fat cat math deserves an investigation. On behalf of overburdened taxpayers, I will be calling for just that.”