American Healthways and CIGNA Healthcare Announce Agreement to Broaden Disease Management Programs.

Business Editors & Health/Medical Writers

NASHVILLE, Tenn.--(BW HealthWire)--March 5, 2002

New Agreements Extend Diabetes and Cardiac Services To CIGNA 

HealthCare Members in PPO Plans

American Healthways (Nasdaq: AMHC) and CIGNA HealthCare announced today that the companies have entered into new agreements to expand the CIGNA HealthCare Well-Aware Program for Better Health(R) disease management initiatives for diabetes and cardiac services to members in CIGNA HealthCare PPO plans.

CIGNA HealthCare PPO members whose employers purchase Well-Aware disease management services are now eligible to participate in the cardiac management program. CIGNA HealthCare is also enhancing the diabetes management program it currently offers to PPO customers. American Healthways care enhancement programs are the foundation for these privately branded initiatives. In addition, the companies will work to promote the programs to CIGNA HealthCare PPO customers. CIGNA HealthCare currently provides PPO benefit plans to approximately 5.8 million people. Financial terms of the agreement were not disclosed.

"We are delighted to have this additional validation of the success of our programs," said Thomas G. Cigarran, American Healthways Chairman and CEO. "There is no greater compliment than having an existing customer purchase additional services. We are confident that these programs will prove to be as effective for CIGNA HealthCare PPO plan members as they have been for their managed care members. We look forward to working with CIGNA HealthCare to make their customers aware of the significant contributions these initiatives can make to a healthier, more productive workforce.

"As a result of the recent return of double digit increases in health care costs, many employers, particularly large, self-insured employers, are considering how disease management programs can help them to both improve the quality of care their employees receive and reduce costs," Cigarran added. "Many of these employers are looking to their health plan to provide such programs. CIGNA HealthCare and American Healthways have created a robust offering that has the essential infrastructure and the necessary relationships with health care stakeholders to make a coordinated, integrated delivery system possible."

"We have achieved excellent results with our disease management programs for our HMO and POS members and are pleased to offer this same award-winning initiative to our PPO members," said Christopher Coloian, Vice President, Care Management for Intracorp, the CIGNA HealthCare specialty company responsible for the administration of its disease management programs. "American Healthways has been an important part of our success."

The CIGNA HealthCare companies comprise one of the nation's leading providers of health-benefit programs with products marketed in all 50 states and managed care networks serving 45 states, the District of Columbia and Puerto Rico. CIGNA HealthCare currently provides medical coverage through managed care and indemnity programs to approximately 14.4 million people. CIGNA HealthCare refers to various operating subsidiaries of CIGNA Corporation. Products and services are provided by these subsidiaries and not by CIGNA Corporation. Subsidiaries include Connecticut General Life Insurance Company, CIGNA Vision Care, Inc., Tel-Drug, Inc. and its affiliates, CIGNA Behavioral Health, Inc., Intracorp, and HMO or service company subsidiaries of CIGNA Health Corporation and CIGNA Dental Health, Inc.

Nashville-based American Healthways (www.americanhealthways.com) is the nation's leading provider of specialized, comprehensive care enhancement services to health plans, physicians and hospitals. The Company's programs have been recognized for innovation and excellence, most recently by the Disease Management Association of America's 2001 Comprehensive Disease Management Company Leadership Award. American Healthways has contracts to provide disease and care management programs to health plans with members in all 50 states, the District of Columbia, and Puerto Rico. The company also operates diabetes management programs in hospitals nationwide.