Fred's CIGNA Scam

Discussion in 'FedEx Discussions' started by MrFedEx, Sep 2, 2009.

  1. MrFedEx

    MrFedEx Engorged Member

    As many of you know, FedEx is self-insured. CIGNA only acts as the administrator of claims...FedEx pays the bills. Here's how the scam works. FedEx works out a deal with CIGNA in which CIGNA is paid a set amount per employee per year. We'll call this AMOUNT X. Fred, weasel that he is, knows he can make a bunch of money off this deal by charging employees AMOUNT Y, which are premium payments significantly over and above what CIGNA receives. Smith pockets the difference, which for a very large company like FedEx, means many millions of dollars.

    The scam gets worse because FedEx has a vested interest in denying services. Ever wonder why CIGNA is increasingly unwilling to pay for anything without a fight? If they can deny your claim altogether that's even better. More money for Uncle Fred, who wants them to screw you out of every penny they can.

    Lots of big companies do this, but FedEx is "different", right? I mean, we have PSP and all, and Fred would never seek to benefit by denying medical coverage or making it such a hassle that you might just decide to pay out-of-pocket, would he? Nah...he's such a good guy. He'd never do that to his employees.

    Yes, he would, and he does it every day. Next time CIGNA creates havoc in your life by denying care, denying payment, or forcing you to call the 42 times on the phone to reach a resolution, remember who set this scam up and whom profits from it.....Frederick W. (Weasel) Smith.
  2. FedEX 4 Life

    FedEX 4 Life New Member

    I find it amazing that you know everything about Fedex.Even the down low stuff like a Cigna scam.You're like the TMZ of Fedex.


    Someone has to keep the trolls hoppin' and the rest of us informed. You know darn well that Uncle Freddie is too busy blowing his nose in hundred dollar bills and lauging at how ignorant most of us are, or at least claim to be. :wink2:
  4. MrFedEx

    MrFedEx Engorged Member

    It's not exactly rocket science. Many companies do the same thing. FedEx claims it's a different kind of isn't. Smith takes full advantage of us however and wherever he can. Some are smart enough to figure it out. Others need it explained step by step in crayon in really big letters(like you, for example). Why do you suppose that CIGNA has such a crummy reputation among the medical community, and how come they never want to pay for services rendered...even when they've paid for the exact same thing before. It's a calculated plan to either not pay at all or make it such a hassle that you'll go insane trying to force them into honoring their obligations. Here, I'll write it really BIG just for you. FEDEX IS MAKING MONEY FROM IT'S MEDICAL INSURANCE PLAN BY OVERCHARGING YOU FOR PREMIUMS AND THEN HAVING CIGNA OBSFUCATE YOUR ISSUE OR CLAIM WHENEVER THEY CAN. FRED KEEPS THE SPARE MONEY FOR YOU IN SWITZERLAND OR THE CAYMAN ISLANDS. Got it?
  5. FedEX 4 Life

    FedEX 4 Life New Member

    Why doesnt Fred just layoff?
  6. bbsam

    bbsam Moderator Staff Member

    MrFedex, I think this time your conspiracy sensitivities have lured you astray. I think you must have absolutely no idea what health insurance costs. Fedex is self insured for certain losses (as is UPS), but I don't think for health insurance. Unless amount Y is some where in the neighborhood of 900-1200 dollars per month, I would bet that amount X is far higher. Leave the smart stuff to Ricochet. He's much better at it. You just look silly.
  7. Ricochet1a

    Ricochet1a New Member


    The only possible issue out of FedEx's self-funding of its health insurance plans through CIGNA would be if CIGNA receives any sort of financial incentive to refuse permission for treatment coverage. Health insurance plans through HMO's have an incentive program for providers to minimize expenses each year in exchange for a "bonus" payment. This is perfectly legal.

    If CIGNA receives any sort of "bonus" from FedEx for keeping total payments to providers under a certain threshold (per employee covered), then there might be an issue. Since all these contracts are kept very private, it would take a whistleblower to reveal if an arrangement like this existed. Again, I doubt there would be any illegality if this sort of arrangment did in fact exist.

    Logic dictates that there has to be some sort of clause in the contract for CIGNA to do its best to minimize covered expenses for FedEx. After all, with CIGNA acting as just an administrator for the plan (having no direct financial stake in the payments made to providers), there has to be some motivating factor to make CIGNA act as if they were spending their own money to cover payments instead of FedEx's. I seriously doubt FedEx would have a contract with CIGNA that allowed them to essentially rubber stamp all claims to have FedEx pick up the final bill.

    The change in insurance coverage is that in the past insurance providers assumed the claim was vaild and made payment. Now, insurers place the burden of proof on the insured and health provider for all claims submitted. Given the skyrocketing costs of health coverage in the past 15 years or so, this isn't too surprising.

    Without getting into too much personal detail, I had an experience a few years ago with providers (not CIGNA), that took almost 6 months to completely resolve. The irritating thing is that it took about 30 hours of my time in phone calls, traveling and correspondence to resolve. The fortunate thing is that in the end all the insurance companies involved paid up (there was multiple insurance coverage) and I was left paying out of pocket about 3% of the total bill for services (what I should've paid under the circumstances). The bills were in excess of $100,000 for the service provided by all parties (physicians, hospitals, ambulance, etc.)
  8. FedEX 4 Life

    FedEX 4 Life New Member

    I agree,I think Mr Fedex is losing his mind lol.
  9. FedEx All the Way!

    FedEx All the Way! New Member

    Amazing how you are soooooo smaaarrrrrttttt - and are still working for Fred! By the way, I just got back from the islands, Fred says HI!!!!!
  10. MrFedEx

    MrFedEx Engorged Member

    Sorry, but this isn't a conspiracy theory. Since you're not insured with CIGNA nor a FedEx "employee" in the traditional sense of the word, you don't know what you are talking about...not unusual.

    Over the last few years, CIGNA has actively set-out to refuse claims and thereby lower costs to FedEx. Every penny they deny in coverage goes right back to FedEx. If you actually had the coverage and worked with many others who also have CIGNA you'd recognize an undeniable pattern and design to reduce costs at the expense of the employee.

    Like I said, FedEx is not an isolated case...many other large companies do the same thing by making a deal with a "provider" (CIGNA) and then pocketing the savings. What makes it different for FedEx is that they represent themselves as a company that "cares" and that always has the best interests of the employee in mind. This is simply a method to simultaneously provide benefits and also generate a profit in the process.

    I suspect you have zero experience with CIGNA, so your comments don't have much merit. If you were to poll Express employees regarding their CIGNA experience(s) you'd undoubtedly see a strong pattern of claim denials, intentional misinformation and disinformation, and a "plan" to minimize care while passing the savings on to FedEx.

    Anyone out there see the same thing with CIGNA?
  11. MrFedEx

    MrFedEx Engorged Member

    Did you see him sitting on the beach in a lounge chair, lighting Cuban cigars with $100 bills or was he waving from the flying saucer that was hovering outside your hotel room?
  12. bbsam

    bbsam Moderator Staff Member

    No, I buy my health insurance. Currently approximately $850 per month. And yes, if my claims don't go up, my premium doesn't go up. So if Fedex pays the majority of the premium.... Well, you figure it out. Welcome to health insurance 2009.
  13. FedEX 4 Life

    FedEX 4 Life New Member

    I have experience with Ciga and ive never been denied for anything.I have not been in the hospital much nor do i go to the doctor alot but either way,my overall experience has been positive compared to previous jobs.
  14. klein

    klein Für Meno :)

    ALL BS, you think fedex would be in the top 100 companies to work for ?
    Which UPS isn't ?

    Fortune magazine will even tell you why they made it, and one of the creteria was bennies !
  15. FedEX 4 Life

    FedEX 4 Life New Member

    thank you
  16. Ricochet1a

    Ricochet1a New Member

    So you've never been denied a major claim. You've never possessed the need to submit a major claim either....

    I've never had a Miss America turn me down for a good time.... but I've never had the opportunity to ask one either....

    Guess that means my odds are good, eh?

    Logic is definately not one of your strong points.
  17. Ricochet1a

    Ricochet1a New Member

    Let's see... Fortune magazine... Who is their readership? Not many blue collar employees I'd imagine. So when they rate "Top 100 companies to work for", from what perspective do you think they are rating? Line hourly employees or management with MBA's?

    For the senior executives that didn't have their retirement gutted, I'd imagine FedEx is still a real good deal for them. FedEx has always trotted out the Fortune magazine rating. Problem is, that I've never come across a single FedEx employee that was ever surveyed by Fortune magazine regarding personal opinion of how they are compensated and working conditions, not ONE.

    For the new line employee that no longer has a viable retirement plan, 15 to 17 year top out (I doubt any recent new hire will ever see "top out") and pay that is 35% below "competitive" rates with UPS... I'm sure that if they were asked without fear of retaliation about FedEx, they would have something different to say.

    When one states a statistic or rating, ALWAYS consider the source and the intended audience of the data.
  18. klein

    klein Für Meno :)

    Gee, I had 3 , maybe 4 big claims. Never denied.
    Yes, right, forgot. I don't need a private insurance company to say yes or no.
    A screwed up system you have there, no matter who insures you. Or if you're even insured.
    Belongs on another thread though.
    But, I haven't asked Modanna out yet, and I'm too old be be adopted by her....LOL

    And you're very welcome "lifer" ! :)
  19. FedEX 4 Life

    FedEX 4 Life New Member

    Huh? Did you just make a pass at me?

    I don't know what you are talking about but if you read the original post,the fragg is saying that Cigna is denying services,not major claims smart guy.Reading,humor,spelling,women and making sense is definitely not one of your strong points.
  20. klein

    klein Für Meno :)

    To answer your question :

    Our editors reviewed eight key areas: (1) Physical Workplace; (2) Work Atmosphere & Social; (3) Health, Financial & Family Benefits; (4) Vacation & Time Off; (5) Employee Communications; (6) Performance Management; (7) Training & Skills Development; and (8) Community Involvement.

    And, I guess it's prestige to work for the top 100 , including Microsoft, Boeing, IBM, etc.
    How they actually get thier data, I'm not sure.
    Kinda like the UN selecting the best countries to live in.

    I lived with a fedex girl, here at my own home, she did almost the same area I had my route.
    She would have never switched to UPS. Money wasn't the thing. And actually, for her only being hired at making $17.02 from the start, was more money then myself after 18 mths ($15.00 start, $16.00 after 6 mths, $17.00 after 18mths, $19.00 after 24 mths, then finally $24.26 after 30 mths).
    So, don't give me this crap of 35% lower wages.

    She also had a nice truck with cd player/radio and a/c. And was always done after 8hrs work.