Aetna Wins Department of Defense Tricare Contract

Mon Jul 13, 2009 5:43pm EDT
 
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HARTFORD, Conn.--(Business Wire)--
Aetna Inc. (NYSE: AET) today announced that it has been awarded the TRICARE
managed care support contract for the North Region by the U.S. Department of
Defense. Under the five-year administrative services contract, Aetna Government
Health Plans will support health care delivery to approximately 2.8 million
eligible beneficiaries who are active duty service members, retirees and family
members based in the 21 states of TRICARE`s North Region. 

"We are honored to be awarded this contract to serve our nation`s military
personnel and their families," said Ronald A. Williams, Aetna`s chairman and
CEO. "Aetna looks forward to putting our leading clinical and technological
capabilities to work in helping our military population access the best possible
health care." 

Beginning April 1, 2010, Aetna Government Health Plans will be the Managed Care
Support Contractor for beneficiaries in the North Region, which consists of
Connecticut, Delaware, the District of Columbia, Illinois, Indiana, Kentucky
(except for Fort Campbell), Maine, Maryland, Massachusetts, Michigan, New
Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode
Island, Vermont, Virginia, West Virginia and Wisconsin, and portions of Iowa and
Missouri. 

Susan M. Peters, president of Aetna Government Health Plans, added, "We`re eager
to begin serving the beneficiaries of the TRICARE program and will immediately
set our planned transition activities in motion, which tap into the extensive
expertise of our current government businesses and our Military Health Care
Advisory Committee. We intend to coordinate the best possible care to our
military beneficiaries in the North Region." 

Aetna has been in business for more than 150 years building a reputation for
excellence and integrity that is one of its most valued assets. The company has
significant experience serving large, complex accounts, including currently
serving approximately 80 percent of the Fortune 100, along with government and
municipal accounts. Aetna has a rich history of government service, including
serving the Federal Employees Health Benefits Program (FEHBP) since 1961, paying
the first-ever Medicare claim in 1966 and being one of the carriers selected for
the first military contract under CHAMPUS (predecessor program to TRICARE) in
1985. 

Currently, Aetna serves 320,000 federal enrollees in the FEHBP in 49 states and
the District of Columbia, and provides dental coverage to approximately 200,000
federal enrollees worldwide through the Federal Employee Dental and Vision
Insurance Program. Aetna offers Medicare products, including Part D, across the
U.S. and the District of Columbia, serving nearly 741,000 members combined. The
company also provides health care management services for Medicaid plans through
its Schaller Anderson and Aetna Better Health subsidiaries. In January 2007,
Aetna became the first national health plan to sign a participating provider
agreement with the Department of Veterans Affairs (VA) for Aetna members, making
all VA providers and facilities in-network participating providers for all
health plans administered by Aetna. 

About Aetna

Aetna is one of the nation`s leading diversified health care benefits companies,
serving approximately 37.2 million people with information and resources to help
them make better informed decisions about their health care. Aetna offers a
broad range of traditional and consumer-directed health insurance products and
related services, including medical, pharmacy, dental, behavioral health, group
life and disability plans, and medical management capabilities and health care
management services for Medicaid plans. Our customers include employer groups,
individuals, college students, part-time and hourly workers, health plans,
governmental units, government-sponsored plans, labor groups and expatriates.
For more information, see www.aetna.com and Aetna's Annual Report at
www.aetna.com/2008annualreport. 

CAUTIONARY STATEMENT; ADDITIONAL INFORMATION -- Certain information in this
press release is forward-looking, including our expectations as to the start
date and duration of the TRICARE health care contract and the number eligible
beneficiaries covered by that contract. Forward-looking information is based on
management's estimates, assumptions and projections, and is subject to
significant uncertainties and other factors, many of which are beyond Aetna's
control. Important risk factors could cause actual future results and other
future events to differ materially from those currently estimated by management,
including the fact that under government procurement regulations the
unsuccessful bidders for the North Region TRICARE health care contract have the
right to appeal (or "protest") the award of the contract to Aetna and that the
contract is for five one year option periods and the government has the right to
terminate the contract at the end of any of those periods. For more discussion
of important risk factors that may materially affect Aetna, please see the risk
factors contained in Aetna's 2008 Annual Report on Form 10-K on file with the
Securities and Exchange Commission ("SEC") and Aetna`s 2009 Quarterly Report on
Form 10-Q for the quarter ended March 31, 2009 (Aetna`s Form 10-Q) on file with
the SEC. You also should read Aetna`s First Quarter 10-Q for a discussion of
Aetna's historical results of operations and financial condition. 





Aetna Inc.
Media Contact:
Fred Laberge, 860-273-4788
labergear@aetna.com
or
Investor Contact:
Jeff Chaffkin, CFA, 860-273-7830
chaffkinj@aetna.com



Copyright Business Wire 2009

 

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