News Article | May 9, 2017
HARTFORD, Conn.--(BUSINESS WIRE)--Aetna (NYSE: AET) today announced that Chairman and CEO Mark T. Bertolini is scheduled to present at the 2017 UBS Global Healthcare Conference in New York City on Monday, May 22, at 10:30 a.m. ET. A live audio webcast will be accessible through the Aetna Investor Relations website at http://www.aetna.com/investor. Interested parties should visit the site prior to the presentation to download and install any necessary audio software. A replay will be available for 14 days. Anyone attending the conference or listening to the meeting is encouraged to read the company’s 2016 Annual Report on Form 10-K and its Quarterly Report on Form 10-Q for the first quarter of 2017, including the discussion of risk factors and Aetna's historical results of operations and financial condition contained therein. Those reports are on file with the Securities and Exchange Commission. About Aetna Aetna is one of the nation's leading diversified health care benefits companies, serving an estimated 44.9 million people with information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life and disability plans, and medical management capabilities, Medicaid health care management services, workers' compensation administrative services and health information technology products and services. Aetna's customers include employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups and expatriates. For more information, see www.aetna.com and learn about how Aetna is helping to build a healthier world. @AetnaNews
News Article | June 13, 2017
SACRAMENTO, Calif.--(BUSINESS WIRE)--Sutter Health, a not-for-profit health care system in Northern California, and Aetna (NYSE: AET) today announced plans to launch a jointly owned health plan. This new collaboration, the first of its kind in Northern California, will bring together Sutter Health’s network of nationally recognized, high-quality doctors and hospitals with Aetna’s leading health plan expertise, cutting-edge data, analytics and health information technology, and shared care management capabilities. This joint venture will deliver a differentiated, personalized experience for members and is designed to help lower the cost of care, resulting in competitively priced products. Sutter Health and Aetna anticipate offering self-insured commercial products starting mid-2018 in the greater Sacramento, Central Valley and Bay Area communities, as well as fully insured PPO products to follow in early 2019, pending regulatory approval. This new company will complement Sutter Health’s and Aetna’s current products by providing more choices to Northern California’s commercially and self-insured populations. By equally sharing ownership and accountability, Sutter Health and Aetna aim to integrate the continuum of care delivery, from wellness to disease management, care coordination, and access. The joint venture will also streamline administrative services for members. This new approach to care management will focus on enhancing member engagement through combined data analytics that identify at-risk patients sooner and provides them with earlier access to care by expanding access to alternative sites of care, and using advanced population health technology to help members better manage chronic and other health conditions. “We are excited to partner with Sutter Health on this joint venture,” said Mike Bahr, Aetna’s senior vice president of local markets and territories. “With Sutter Health, we believe we have found a strong partner that shares our vision to transform health care in Northern California by providing members with a simpler, more personal experience.” Through this new relationship, Sutter Health and Aetna will work together to integrate health care and insurance coverage that provides members with the services they need as quickly and efficiently as possible. “Patients benefit when providers and health plans share resources and work together,” says Phil Jackson, Sutter Health’s CEO of Health Plan Products. “Our Sutter Health and Aetna insurance product offerings will provide employers with new self-funded and fully insured PPO options in Northern California.” Currently, Sutter Health-affiliated providers care for more than three million Northern California residents. Aetna provides health care benefits to approximately 415,000 members in Northern California. Aetna projects to have at least 75 percent of its claim payments in value-based models by 2020. About Aetna Aetna is one of the nation's leading diversified health care benefits companies, serving an estimated 44.9 million people with information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life and disability plans, and medical management capabilities, Medicaid health care management services, workers' compensation administrative services and health information technology products and services. Aetna's customers include employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups and expatriates. For more information, see www.aetna.com and learn about how Aetna is helping to build a healthier world. @AetnaNews About Sutter Health Sutter Health is a nationally recognized leader in health care for quality outcomes, exceptional patient care and safety and was named one of the top performing health systems in the country by Truven in 2016. Rooted in Sutter Health’s not-for-profit mission, these team members partner to deliver exceptional care that feels personal. From physician offices to hospitals to outpatient care centers and home services, they proudly support and learn from the more than 3 million people in their care—nearly 1 percent of the U.S. population, in one of the most diverse and innovative regions in the world. Sutter pioneers adopt new technologies, make novel discoveries and embrace creative thinking to help patients and communities achieve their best health. From its street nurse program that provides check-ups for homeless people, to telemedicine-aided specialist consultations, to walk-in care clinics, to smart glass technology, the Sutter Health team goes beyond traditional models to make care more convenient and to nurture and empower people throughout their medical journey.
News Article | July 20, 2017
HARTFORD, Conn.--(BUSINESS WIRE)--Aetna (NYSE: AET) today announced that second-quarter 2017 results will be made public on Thursday, August 3, at 6 a.m. ET. The company will also host a conference call, which will begin at 8:30 a.m. ET. The public may access the conference call through a live audio webcast available via Aetna’s Investor Information website, www.aetna.com/investor. Financial, statistical and other information related to the conference call, including GAAP reconciliations, will be available at the same website. The conference call can also be accessed by dialing 1-877-709-8150, or +1-201-689-8354 for international callers. No access code is required. It is recommended that participants dial in approximately 10 minutes before the call; all individuals will be asked to identify themselves and provide their affiliations. A replay of the call may be accessed via Aetna’s Investor Information website or by dialing 1- 877-660-6853, or +1-201-612-7415 for international callers. The replay conference ID is 13665591. Telephone replays will be available until 11 p.m. ET on August 17, 2017. Anyone listening to Aetna’s conference call is encouraged to read the company’s 2016 Annual Report on Form 10-K and its Quarterly Report on Form 10-Q for the first quarter of 2017, including the discussion of risk factors and Aetna's historical results of operations and financial condition contained therein. Those reports are on file with the Securities and Exchange Commission. About Aetna Aetna is one of the nation's leading diversified health care benefits companies, serving an estimated 44.9 million people with information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life and disability plans, and medical management capabilities, Medicaid health care management services, workers' compensation administrative services and health information technology products and services. Aetna's customers include employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups and expatriates. For more information, see www.aetna.com and learn about how Aetna is helping to build a healthier world. @AetnaNews
News Article | August 7, 2017
"As part of Aetna's ongoing commitment to joining members where they are, we are infusing our online tools with the same modern consumer conveniences that we expect in every other aspect of our lives. With the addition of these capabilities, it will be easier for our Dental members to make more informed decisions, better maintain their oral health, and potentially save hundreds of dollars a year," said Sheryl Burke, senior vice president of Specialty Businesses at Aetna. Aetna Dental is the first dental carrier to integrate Brighter's complete suite of consumer engagement services to promote cost-effective and convenient access to dental care. With these enhancements, members will receive personalized benefit status updates and recommendations throughout the year on how they can enhance the value of their plan. Members will also be able to use Brighter's, industry-first, interactive marketplace directory to: Brighter Schedule® also enables members to conveniently schedule their appointments online and receive reminders when they are due for their next check-up. Aetna test groups have shown that Brighter's consumer engagement services drive exceptional member satisfaction and more in-network provider selection which can lead to reduced claims costs for employers that purchase an Aetna Dental Plan and an employee base that is more engaged in their oral health. "Brighter is excited to support Aetna's desire to use innovative technologies and consumer data to offer best-in-class products," said Jake Winebaum, chief executive officer of Brighter. "As our platform continues to expand, we look forward to working with consumer-focused organizations like Aetna to improve how members engage with their benefit plans." Aetna is one of the nation's leading diversified health care benefits companies, serving an estimated 44.9 million people with information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life and disability plans, and medical management capabilities, Medicaid health care management services, workers' compensation administrative services and health information technology products and services. Aetna's customers include employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups and expatriates. For more information, see www.aetna.com and learn about how Aetna is helping to build a healthier world. @AetnaNews By seamlessly connecting patients, providers & payers on a cloud-based marketplace platform, Brighter ensures the most cost-effective, convenient and quality health care transactions. Major national payers license the Brighter SaaS platform to deliver best-in-class products to their customers, greater opportunities for their participating providers, and to advance their consumer initiatives across the healthcare spectrum. Brighter was founded by a team of Internet and healthcare entrepreneurs and is backed by some of the world's most respected investors including Mayfield Fund, Benchmark, Tenaya Capital and General Catalyst. Learn more about Brighter at www.brighter.com.
News Article | August 3, 2017
HARTFORD, Conn.--(BUSINESS WIRE)--Aetna (NYSE: AET) announced second-quarter 2017 net income(1) of $1.2 billion, or $3.60 per share. Adjusted earnings(2) for second-quarter 2017 were $1.1 billion, or $3.42 per share. Aetna's strong second-quarter performance resulted in net income of $822 million and adjusted earnings of $2.1 billion for the six months ended June 30, 2017. “Our strong second quarter results speak to our continued focus on disciplined pricing and execution of our targeted growth strategy,” said Mark T. Bertolini, Aetna chairman and CEO. “Based on our continued outperformance, we are once again increasing our full-year 2017 earnings projections.” “Our core businesses continued to outperform during the second quarter, carrying forward positive momentum from the start of the year,” said Shawn M. Guertin, Aetna executive vice president and CFO. “Additional 2017 earnings power allows us to improve our full-year outlook while also accelerating our timeline for targeted investments in growth initiatives.” Aetna presents both GAAP and non-GAAP financial measures in this press release to provide investors with additional information. Refer to footnotes (1) through (6) for definitions of non-GAAP financial measures and pages 9 through 11 for reconciliations of the most directly comparable GAAP financial measures to non-GAAP financial measures. Health Care, which provides a full range of insured and self-insured medical, pharmacy, dental and behavioral health products and services, reported: Large Case Pensions, which manages a variety of discontinued and other retirement and savings products, primarily for qualified pension plans, reported: Aetna's conference call to discuss second-quarter 2017 results will begin at 8:30 a.m. ET today. The public may access the conference call through a live audio webcast available on Aetna's Investor Information website at www.aetna.com/investor. Financial, statistical and other information, including GAAP reconciliations, related to the conference call also will be available on Aetna's Investor Information website. The conference call also can be accessed by dialing 1-877-709-8150, or +1-201-689-8354 for international callers. The company suggests participants dial in approximately 10 minutes before the call. No access code is required. Individuals who dial in will be asked to identify themselves and their affiliations. A replay of the call may be accessed through Aetna's Investor Information website at www.aetna.com/investor or by dialing 1-877-660-6853, or +1-201-612-7415 for international callers. The replay conference ID is 13665591. Telephone replays will be available until 11 p.m. ET on August 17, 2017. About Aetna Aetna is one of the nation's leading diversified health care benefits companies, serving an estimated 44.7 million people with information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life and disability plans, and medical management capabilities, Medicaid health care management services, workers' compensation administrative services and health information technology products and services. Aetna's customers include employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups and expatriates. For more information, see www.aetna.com and learn about how Aetna is helping to build a healthier world. @AetnaNews (1) Net income refers to net income attributable to Aetna reported in Aetna's Consolidated Statements of Income in accordance with U.S. generally accepted accounting principles ("GAAP"). Income before income taxes refers to income before income taxes attributable to Aetna in accordance with GAAP. Unless otherwise indicated, all references in this press release to net income, net income per share and income before income taxes exclude amounts attributable to non-controlling interests. (2) Non-GAAP financial measures such as adjusted earnings, adjusted earnings per share, pre-tax adjusted earnings, adjusted operating expenses, adjusted revenue, adjusted expense ratio and adjusted pre-tax margin exclude from the relevant GAAP metrics, as applicable: Although the excluded items may recur, management believes the non-GAAP financial measures Aetna discloses, including those described above, provide a more useful comparison of Aetna's underlying business performance from period to period. Prior to March 31, 2017, operating earnings was the measure reported to the chief executive officer for purposes of assessing financial performance and making operating decisions, such as the allocation of resources among Aetna's business segments. Effective March 31, 2017, the chief executive officer assesses consolidated Aetna results based on adjusted earnings and assesses business segment results based on pre-tax adjusted earnings because income taxes are recorded in Aetna's Corporate Financing segment and are not allocated to Aetna's business segments. Also effective March 31, 2017, transaction and integration-related costs were reclassified to Aetna's Corporate Financing segment because they do not reflect Aetna's underlying business performance. The prior periods have been restated to reflect this presentation. Non-GAAP financial measures Aetna discloses, including those described above, should not be considered a substitute for, or superior to, financial measures determined or calculated in accordance with GAAP. For the periods covered in this press release, the following items are excluded from the non-GAAP financial measures described above, as applicable, because Aetna believes they neither relate to the ordinary course of Aetna's business nor reflect Aetna's underlying business performance: For a reconciliation of financial measures calculated under GAAP to these items, refer to the tables on pages 9 through 11 of this press release. (3) Adjusted revenue excludes net realized capital gains and losses and interest income on the proceeds of Aetna's senior notes issued in June 2016 as noted in (2) above. Refer to the tables on pages 9 through 11 of this press release for a reconciliation of total revenue calculated under GAAP to adjusted revenue. (4) Projected full-year 2017 net income per share and adjusted earnings per share reflect a range of 334 million to 335 million weighted average diluted shares. Projected full-year 2017 adjusted earnings per share exclude from projected full-year 2017 net income per share the loss on early extinguishment of long-term debt, the projected Penn Treaty-related guaranty fund assessments, projected transaction and integration-related costs (including termination costs) primarily related to the Humana Transaction, the reduction of the reserve for anticipated future losses on discontinued products, estimated amortization of other acquired intangible assets, net realized capital gains and losses, other items, if any, that neither relate to the ordinary course of Aetna's business nor reflect Aetna's underlying business performance and the corresponding income tax benefit or expense related to the items excluded from net income per share discussed above. Amortization of other acquired intangible assets relates to Aetna's acquisition activities. The table below reconciles projected 2017 net income per share to projected 2017 adjusted earnings per share: Aetna will experience net realized capital gains or net realized capital losses during the remainder of 2017, however Aetna cannot project the amount of such future gains or losses. Therefore, Aetna has assumed no net realized capital gains or losses after June 30, 2017 for purposes of projecting net income and net income per share. Aetna's annual net realized capital gains or losses ranged from a net realized capital loss of $65 million to a net realized capital gain of $86 million during calendar years 2014 through 2016. (5) The adjusted expense ratio excludes net realized capital gains and losses and other items, if any, that are excluded from adjusted revenue or adjusted operating expenses, as noted in (2) above. For a reconciliation of the comparable GAAP measure to this metric for the periods covered by this press release, refer to page 11 of this press release. (6) In order to provide useful information regarding Aetna's profitability on a basis comparable to others in the industry, without regard to financing decisions, income taxes or amortization of other acquired intangible assets (each of which may vary for reasons not directly related to the performance of the underlying business), Aetna's adjusted pre-tax margin is based on adjusted earnings excluding interest expense and income taxes. Management also uses adjusted pre-tax margin to assess Aetna's performance, including performance versus competitors. (7) Days claims payable is calculated by dividing the health care costs payable at each quarter end by the average health care costs per day in each respective quarter. The total debt to consolidated capitalization ratio is calculated by dividing total long-term debt and short-term debt ("Total Debt") by the sum of Total Debt and total Aetna shareholders' equity. (8) Aetna's Corporate Financing segment is not a business segment. It is added to Aetna's business segments to reconcile segment reporting to Aetna's consolidated results. The Corporate Financing segment includes interest expense on Aetna's outstanding debt and the financing components of Aetna's pension and other postretirement employee benefit plan expenses (benefits), and, effective March 31, 2017, all transaction and integration-related costs and income taxes. The prior periods have been restated to reflect this presentation. As described in (2) above, the adjusted earnings of the Corporate Financing segment exclude other items, if any, that neither relate to the ordinary course of Aetna's business nor reflect Aetna's underlying business performance. (9) Interest expense included in the reconciliation to adjusted earnings before income taxes, excluding interest expense and the reconciliation to adjusted earnings excluding interest expense, net of tax for the six months ended June 30, 2017 and the three and six months ended June 30, 2016 excludes costs associated with the term loan credit agreement executed in connection with the Humana Transaction and the negative cost of carry on transaction-related debt incurred in connection with the Humana Transaction. Interest expense for the three and six months ended June 30, 2016 excludes costs associated with bridge credit agreement executed in connection with the Humana Transaction. These costs are included within transaction and integration-related costs. Refer to (2) above for further discussion. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can generally identify forward-looking statements by the use of forward-looking terminology such as “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “evaluate,” “expect,” “explore,” “forecast,” “guidance,” “intend,” “likely,” “may,” “might,” “outlook,” “plan,” “potential,” “predict,” “probable,” “project,” “seek,” “should,” “view,” or “will,” or the negative thereof or other variations thereon or comparable terminology. These forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond Aetna’s control. Statements in this press release regarding Aetna that are forward-looking, including Aetna’s projections as to net income per share, adjusted earnings per share, Penn Treaty-related guaranty fund assessments, transaction and integration-related costs, amortization of other acquired intangible assets, the income tax benefit related to items excluded from adjusted earnings, weighted average diluted shares (including the impact of accelerated share repurchase agreements), and future operating results, are based on management’s estimates, assumptions and projections, and are 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, but not limited to: significant disruptions in the market for Aetna's common shares and/or financial markets; unanticipated increases in medical costs (including increased intensity or medical utilization as a result of flu or otherwise; changes in membership mix to higher cost or lower-premium products or membership adverse selection; medical cost increases resulting from unfavorable changes in contracting or re-contracting with providers (including as a result of provider consolidation and/or integration); increased pharmacy costs (including in Aetna’s public health insurance exchange products)); the profitability of Aetna’s individual products, where membership is higher than Aetna previously projected and has had and may continue to have more adverse health status and/or higher medical benefit utilization (including due to Aetna's product exit strategy) than Aetna projected; any suspension of the ACA's health insurer fee for 2018; adverse impacts from any failure to raise the U.S. Federal government’s debt ceiling or any sustained U.S. Federal government shut down; and changes in Aetna’s future cash requirements, capital requirements, results of operations, financial condition and/or cash flows. As currently enacted, health care reform will continue to significantly impact Aetna’s business operations and financial results, including Aetna’s pricing and medical benefit ratios, and key components of the legislation will continue to be phased in through 2020. Aetna will be required to dedicate material resources and incur material expenses during 2017 to implement health care reform. Significant parts of the legislation continue to evolve through the promulgation of regulations and guidance. In addition, pending efforts in the U.S. Congress to repeal, amend, replace or restrict funding for various aspects of health care reform and pending litigation challenging aspects of the law continue to create additional uncertainty about the ultimate impact of health care reform. As a result, many of the impacts of health care reform are unknown. Other important risk factors include: adverse changes in federal or state government policies, legislation or regulations (including legislative, judicial or regulatory measures that would affect Aetna’s business model, repeal, restrict funding for or amend various aspects of health care reform, limit Aetna’s ability to price for the risk it assumes and/or reflect reasonable costs or profits in its pricing, such as mandated minimum medical benefit ratios, or eliminate or reduce ERISA pre-emption of state laws (increasing Aetna’s potential litigation exposure)); uncertainty related to Aetna’s accruals for the ACA's reinsurance, risk adjustment and risk corridor programs (“3R’s”); uncertainty related to the funding for and final reconciliations with respect to the ACA's risk management and subsidy programs; the implementation of health care reform legislation, collection of ACA fees, assessments and taxes through increased premiums; adverse legislative, regulatory and/or judicial changes to or interpretations of existing health care reform legislation and/or regulations (including those relating to minimum medical loss ratio (“MLR”) rebates); the implementation of public health insurance exchanges; the timing and amount of and payment methods for satisfying assessments for Penn Treaty Network America Insurance Company and other insolvent payors under state guaranty fund laws; adverse and less predictable economic conditions in the U.S. and abroad (including unanticipated levels of, or increases in the rate of, unemployment); reputational or financial issues arising from Aetna’s social media activities, data security breaches, other cybersecurity risks or other causes; adverse program, pricing, funding or audit actions by federal or state government payors, including as a result of sequestration and/or changes to or curtailment or elimination of the Centers for Medicare & Medicaid Services’ ("CMS") star rating bonus payments; Aetna's ability to maintain and/or enhance its CMS star ratings; Aetna’s ability to diversify Aetna’s sources of revenue and earnings (including by developing and expanding Aetna's consumer business and expanding Aetna’s foreign operations), transform Aetna’s business model, develop new products and optimize Aetna’s business platforms; the success of Aetna’s consumer health and services initiatives; adverse changes in size, product or geographic mix or medical cost experience of membership; managing executive succession and key talent retention, recruitment and development; failure to achieve and/or delays in achieving desired rate increases and/or profitable membership growth due to regulatory review or other regulatory restrictions, an uncertain economy and/or significant competition, especially in key geographic areas where membership is concentrated, including successful protests of business awarded to Aetna; failure to adequately implement health care reform and/or repeal of or changes in health care reform; the outcome of various litigation and regulatory matters, including audits, challenges to Aetna’s minimum MLR rebate methodology and/or reports, intellectual property litigation and litigation concerning, and ongoing reviews by various regulatory authorities of, certain of Aetna’s payment practices with respect to out-of-network providers, other providers and/or life insurance policies; Aetna’s ability to integrate, simplify, and enhance Aetna’s existing products, processes and information technology systems and platforms to keep pace with changing customer and regulatory needs; Aetna’s ability to successfully integrate Aetna’s businesses (including businesses Aetna may acquire in the future) and implement multiple strategic and operational initiatives simultaneously; Aetna’s ability to manage health care and other benefit costs; Aetna’s ability to reduce administrative expenses while maintaining targeted levels of service and operating performance; failure by a service provider to meet its obligations to Aetna; Aetna’s ability to develop and maintain relationships (including joint ventures or other collaborative risk-sharing agreements) with providers while taking actions to reduce medical costs and/or expand the services Aetna offers; Aetna’s ability to demonstrate that Aetna’s products and processes lead to access to quality affordable care by Aetna’s members; Aetna’s ability to maintain its relationships with third-party brokers, consultants and agents who sell its products; collection of amounts payable to Aetna by the State of Illinois; increases in medical costs or Group Insurance claims resulting from any epidemics, acts of terrorism or other extreme events; changes in medical cost estimates due to the necessary extensive judgment that is used in the medical cost estimation process, the considerable variability inherent in such estimates, and the sensitivity of such estimates to changes in medical claims payment patterns and changes in medical cost trends; and a downgrade in Aetna’s financial ratings. For more discussion of important risk factors that may materially affect Aetna, please see the risk factors contained in Aetna’s 2016 Annual Report on Form 10-K (“Aetna’s 2016 Annual Report”) and Aetna's Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 ("Aetna's March 2017 Quarterly Report"), each on file with the Securities and Exchange Commission ("SEC"), and Aetna's Quarterly Report on Form 10-Q for the quarter ended June 30, 2017 ("Aetna's June 2017 Quarterly Report"), when filed with the SEC. You should also read Aetna’s 2016 Annual Report and Aetna's March 2017 Quarterly Report, each on file with the SEC, and Aetna's June 2017 Quarterly Report, when filed with the SEC for a discussion of Aetna’s historical results of operations and financial condition. No assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do occur, what impact they will have on the results of operations, financial condition or cash flows of Aetna. Aetna does not assume any duty to update or revise forward-looking statements, whether as a result of new information, future events or otherwise, as of any future date. (a) Negative amounts reported for incurred health care costs related to prior years result from claims being settled for amounts less than originally estimated. (b) Total incurred health care costs exclude from the table above $120 million and $64 million, respectively, related to the premium deficiency reserve recorded during the six months ended June 30, 2017 and 2016, respectively, for the 2017 and 2016 coverage years, respectively, on Aetna's individual Commercial products. (a) Aetna participates in certain public health insurance exchanges established pursuant to the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 (as amended, collectively, “Health Care Reform” or the “ACA”). Under regulations established by the U.S. Department of Health and Human Services (“HHS”), HHS pays Aetna a portion of the premium and a portion of the health care costs for low-income individual Public Exchange members. In addition, HHS administers the 3Rs risk management programs. The ACA’s temporary Reinsurance and Risk Corridor programs expired at the end of 2016. (b) Aetna estimates that as of June 30, 2017, it is entitled to receive a total of $314 million from HHS under the three-year ACA risk corridor program for the 2014 through 2016 program years. At June 30, 2017, Aetna did not record any ACA risk corridor receivables related to the 2016 or 2015 program years or any amount in excess of HHS's announced prorated funding amount for the 2014 program year, because payments from HHS are uncertain.
News Article | February 20, 2017
NEW YORK, Feb. 20, 2017 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Aetna Inc. ("Aetna" or the "Company") (NYSE:AET) of the March 27, 2017 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit...
News Article | February 24, 2017
GRAND RAPIDS, Mich., Feb. 24, 2017 /PRNewswire/ -- NxGen MDx, a Company that provides innovative genetic testing solutions, announced the execution of a new national Agreement with Aetna in a press release issued February 9, 2017 indicating that full-gene sequencing is covered under the...
News Article | February 15, 2017
LOUISVILLE, Ky.--(BUSINESS WIRE)--Humana Inc. (NYSE: HUM) today announced the mutual termination of its merger agreement with Aetna Inc. (Aetna), following a ruling from the United States District Court for the District of Columbia granting a United States Department of Justice request to enjoin the merger. Under the terms of the merger agreement, Humana is entitled to a breakup fee of $1 billion, or approximately $630 million, net of tax. “The healthcare industry is in a dynamic state, and the public is looking to companies like Humana to improve the cost of care and the consumer experience,” said Bruce D. Broussard, Humana’s President and Chief Executive Officer. “As an independent company, we will continue to innovate and sharpen our focus on the local healthcare experience of all our members, especially seniors living with chronic conditions. Our strategy not only improves the value we bring to members, doctors and other healthcare professionals, but it also helps reduce costs and enhances the growth platform for both our health plans and our Healthcare Services businesses, thus positioning us well for long-term, sustainable growth.” Broussard added, “We are very proud of the tremendous effort and commitment of our associates during this extended period of uncertainty and their continuing focus and dedication to helping our members achieve their best health.” As an independent company, Humana will continue to build upon its integrated care delivery strategy by intensifying its focus on people living with chronic conditions – particularly those aging into or already in Medicare Advantage or dual eligible plans. This population is fast-growing, with greater than 85 percent of seniors having at least one chronic condition and 65 percent having multiple chronic conditions (a). To further advance this strategy, the company will maintain its employer group customer focus, continuing to establish relationships with Medicare age-ins, while leveraging its clinical and operating platforms and furthering partnerships with doctors and other healthcare professionals. This brings value-added capabilities to the company’s employer group customers, particularly small to mid-size employers. As the company’s business model demonstrates, when Humana integrates care with doctors and other healthcare professionals and serves members outside of traditional institutions, its members’ health improves, care is more cost-effective, and consumers are more engaged. These are key drivers to enabling more affordable healthcare for consumers and facilitating higher Star quality ratings, while also improving financial performance. Humana is enhancing its integrated care delivery strategy in several key areas to further enable a rich, locally delivered healthcare experience for members, by doing the following: “By extending and expanding the local capabilities of our Healthcare Services businesses and supporting doctors and other healthcare professionals with innovative and unsurpassed population-health tools, we believe we can remove barriers for our members. This will help them achieve their best health by enabling a more simplified healthcare experience – one that combines the lifestyles of our members and the clinical aspects so critical to improving lifelong health and well-being,” said Broussard. “We believe this will, in turn, continue to drive growth across the enterprise and favorable returns for our stockholders.” The company will continue its practice of evaluating its portfolio of businesses to ensure focus on those lines of business where its integrated care delivery strategy can add value for health plan members, healthcare professionals and its government program and employer group customers. Regarding the company’s individual commercial medical coverage (Individual Commercial), substantially all of which is offered on-exchange through the federal Marketplaces, Humana has worked over the past several years to address market and programmatic challenges in order to keep coverage options available wherever it could offer a viable product. This has included pursuing business changes, such as modifying networks, restructuring product offerings, reducing the company’s geographic footprint and increasing premiums. All of these actions were taken with the expectation that the company’s Individual Commercial business would stabilize to the point where the company could continue to participate in the program. However, based on its initial analysis of data associated with the company’s healthcare exchange membership following the 2017 open enrollment period, Humana is seeing further signs of an unbalanced risk pool. Therefore, the company has decided that it cannot continue to offer this coverage for 2018. Through the remainder of 2017, Humana remains committed to serving its current members across 11 states where it offers Individual Commercial products. And, as it has done in the past, Humana will work closely with its state partners as it navigates this process. The company today also announced strategic changes to its capital deployment plans to increase its return of capital to stockholders and to create capacity for strategic investments. Humana also announced its intention to host an Investor Day in New York, NY on April 25, 2017, where it will provide more detail on the company’s strategic actions and its financial prospects. Specific details for that event will be announced at a later date. Humana provided its Generally Accepted Accounting Principles (GAAP) and Adjusted EPS guidance for FY17 as detailed below. GAAP and Adjusted results for the year ended December 31, 2016 (FY16) are shown below for comparison. Adjusted FY16 results have been recast to exclude the Individual Commercial business given the company’s decision to no longer offer these products beginning in 2018, as discussed above. “Our results for 2016 demonstrated Humana’s ability to maintain operational discipline and advance our strategy during periods of uncertainty and change,” said Brian A. Kane, Senior Vice President and Chief Financial Officer for Humana. “As we head into 2017, this experience increases our confidence that we will continue to drive increased consistency and sustainability of earnings, as well as top and bottom line growth.” Humana will host a conference call and webcast to discuss the announcements in this press release at 4:45 p.m. eastern time today. The webcast may be accessed via Humana’s Investor Relations page at humana.com. The company suggests those listening over the web sign on approximately 15 minutes in advance of the call. The company suggests web participants visit the site well in advance of the call to run a system test and to download any free software needed. For those unable to listen in to the live call, the call replay may be accessed the Historical Webcasts and Presentations section of the Investor Relations page at humana.com, approximately two hours following the live webcast. Telephone replays will be available from 8:15 p.m. eastern time on February 14, 2017 until midnight eastern time on April 14, 2017 and can be accessed by dialing 855-859-2056 and providing the conference ID # 72762971. (c) FY16 Adjusted EPS (Recast) excludes the following: (d) On November 10, 2016, the U.S. Court of Federal Claims ruled in favor of the government in one of a series of cases filed by insurers against the Department of Health and Humana Services (HHS) to collect risk corridor payments, rejecting all of the insurer’s statutory, contract and Constitutional claims for payment. The company had maintained the receivable in previous periods in reliance upon the interpretation previously promulgated by HHS that the risk corridor receivables were obligations of the U.S. government. Given this court decision, however, the company’s conclusion with respect to the ultimate collectability of the receivable has shifted, and accounting rules required that the receivable be written off. Land of Lincoln Mutual Health Insurance Company v. United States; United States Court of Federal Claims No. 16-744C. (e) As noted above, in addition to previously-disclosed adjustments, EPS for FY16 included a strengthening of reserves for the company’s non-strategic closed block of long-term care business. In connection with its acquisition of KMG America in 2007, the company acquired a non-strategic closed block of long-term care insurance policies. These policies were sold between 1995 and 2005, of which approximately 30,800 remained in force as of December 31, 2016. During the fourth quarter of 2016, the company recorded a reserve strengthening for this closed block of policies as it determined the present value of future premiums, together with its existing reserves were not adequate to provide for future policy benefits. This adjustment was primarily driven by emerging experience indicating longer claims duration, a prolonged lower interest rate environment and an increase in policyholder life expectancies. (f) The company’s reserving practice is to consistently recognize the actuarial best estimate of its ultimate benefits expense. Actuarial standards require the use of assumptions based on moderately adverse experience, which generally results in favorable reserve development related to the prior year. In FY16, the company experienced prior period reserve development that exceeded what it would expect in a typical year primarily due to higher than normal claim recoveries. This news release includes forward‐looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in investor presentations, press releases, Securities and Exchange Commission (SEC) filings, and in oral statements made by or with the approval of one of Humana’s executive officers, the words or phrases like “expects,” “believes,” “anticipates,” “intends,” “likely will result,” “estimates,” “projects” or variations of such words and similar expressions are intended to identify such forward‐looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and assumptions, including, among other things, information set forth in the “Risk Factors” section of the company’s SEC filings, a summary of which includes but is not limited to the following: In making forward‐looking statements, Humana is not undertaking to address or update them in future filings or communications regarding its business or results. In light of these risks, uncertainties, and assumptions, the forward‐looking events discussed herein may or may not occur. There also may be other risks that the company is unable to predict at this time. Any of these risks and uncertainties may cause actual results to differ materially from the results discussed in the forward‐looking statements. Humana advises investors to read the following documents as filed by the company with the SEC for further discussion both of the risks it faces and its historical performance: Humana Inc., headquartered in Louisville, Ky., is a leading health and well-being company focused on making it easy for people to achieve their best health with clinical excellence through coordinated care. The company’s strategy integrates care delivery, the member experience, and clinical and consumer insights to encourage engagement, behavior change, proactive clinical outreach and wellness for the millions of people we serve across the country. More information regarding Humana is available to investors via the Investor Relations page of the company’s web site at www.humana.com, including copies of:
News Article | February 22, 2017
NEW YORK--(BUSINESS WIRE)--The Law Offices of Vincent Wong announce that a class action lawsuit has been commenced in the USDC for the District of Connecticut on behalf of investors who purchased Aetna Inc. (NYSE:AET) securities between August 15, 2016 through January 20, 2017. Click here to learn about the case: http://www.wongesq.com/pslra/aetna-inc. There is no cost or obligation to you. According to the complaint, throughout the class period Aetna made false and/or misleading statements and/or failed to disclose that: (1) Aetna and its senior executives attempted to leverage Aetna’s participation in the Public Exchanges for favorable treatment from regulators regarding the Humana acquisition; (2) Aetna threatened to limit its participation in public health insurance exchanges if the Department of Justice (“DOJ”) attempted to block the merger; (3) Aetna did not withdraw from certain public health insurance exchanges for business reasons as Defendants claimed, but to follow through on its threat of leaving the marketplace once the DOJ filed suit and to improve its litigation position; (4) Aetna withdrew from public health insurance exchanges that were profitable for Aetna; and (5) as a result of the foregoing, Defendants’ statements about Aetna’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis. If you suffered a loss in Aetna you have until March 27, 2017 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff. To obtain additional information, contact Vincent Wong, Esq. either via email firstname.lastname@example.org, by telephone at 212.425.1140, or visit http://www.wongesq.com/pslra/aetna-inc. Vincent Wong, Esq. is an experienced attorney that has represented investors in securities litigations involving financial fraud and violations of shareholder rights. Attorney advertising. Prior results do not guarantee similar outcomes.
News Article | February 23, 2017
PITTSBURGH--(BUSINESS WIRE)--Dans une étude récente réalisée par le CMMI Institute, près de 50 % des organisations ont répondu qu’elles n’avaient pas de processus standard en place leur permettant d’adapter rapidement leurs capacités aux opportunités. Pourtant, aujourd’hui plus que jamais, les dirigeants d’entreprise doivent s’assurer que leur organisation satisfait leurs clients au-delà de leurs attentes et innover pour qu’elle se démarque sur le marché. Depuis plus de 25 ans, le CMMI Institute aide des milliers d’organisations – y compris Honeywell, Lockheed Martin, Boeing, Fujitsu, IBM, HP, Microsoft, Oracle, Cisco Systems, et Intel – à évaluer leur capacité organisationnelle et à réaliser de meilleures performances. Profitez de conseils d’expert et des ressources proposées sur l’identification des capacités clés qui définissent votre organisation en participant à la conférence annuelle du CMMI Institute « Capability Counts » qui se tiendra les 16 et 17 mai 2017, à Alexandria, dans l’état de Virginie, en périphérie immédiate de Washington, DC. La conférence présentera comment le CMMI a réussi à proposer à plusieurs reprises des approches exploitables notamment concernant la capacité et la maturité d’une organisation, mais aussi la manière de créer une culture d’amélioration continue. « La capacité constitue la pierre angulaire de toute stratégie, et la stratégie définit la manière dont nous concurrençons avec les autres organisations. La capacité correspond à la capacité d’être concurrentiel », a déclaré M. Kirk Botula, PDG du CMMI Institute. « Le programme de la conférence “Capability Counts 2017” sera axé sur les organisations qui élaborent des stratégies dans le but de générer de la croissance et qui s’appuient sur leurs capacités pour créer une culture d’avantage concurrentiel et d’amélioration constante. » Rejoignez des centaines de professionnels au profil et au parcours variés, venus de divers pays, qui s’intéressent à l’amélioration des capacités et de la performance. Choisissez parmi plus de 80 présentations, des tutoriels pratiques, des panels de discussion interactifs et bien plus encore. Travaillez en face-à-face avec des conseillers et bénéficiez du savoir des experts internationaux du CMMI à l’expertise et au parcours divers. Des experts de Honeywell, Siemens, Garmin, Aetna, la NASA, CAE, MITRE, et Deloitte seront présents et partageront leurs connaissances et leur expérience. Tous les professionnels, quel que soit leur niveau d’expertise, pourront tirer des enseignements de la conférence « Capability Counts 2017 » en matière de meilleures pratiques et de solutions. Créez votre programme personnalisé pour les deux jours de la conférence en sélectionnant les séances auxquelles vous voulez assister selon sept parcours. Rencontrez des experts et découvrez comment leur organisation s’est appuyée sur ses capacités et a dépassé ses concurrents avec des produits et des services qui marchent. Des organisations gouvernementales et du secteur de la santé partageront également leur expérience à travers des témoignages convaincants concernant leur adoption de l’approche du CMMI et l’amélioration de leurs capacités. Ne manquez pas de découvrir comment les organisations qui ont adopté et mis en œuvre l’approche du CMMI en conjonction avec d’autres méthodes comme Agile, SAFe, Kanban et ITIL, ont pu améliorer leur performance. Les participants auront le plaisir d’assister à un grand nombre de présentations passionnantes dont les suivantes : « High Maturity Appraisals - The Top 10 HM Misconceptions », « Harmonizing Agile and CMMI Verification and Validation », « Objective Visionary of CMMI High Maturity Practices with Agile & DevOps Implementation », « CMMI SVC and Consumer Driven Healthcare - Enabling the Future », « Holacracy: Abolish hierarchy while leveraging CMMI to Radically change your organization », et « Scaled Agility in Regulated Environments ». Le CMMI Institute (CMMIInstitute.com) est le leader mondial de la promotion de l’adoption des meilleures pratiques par les personnes, dans les processus et dans les technologies. Le CMMI Institute fournit aux organisations les outils et une assistance leur permettant de mesurer leurs capacités et de développer leur maturité en comparant leurs opérations aux meilleures pratiques et en identifiant les écarts de performance. Depuis plus de 25 ans, des milliers d’organisations hautement performantes, dans divers secteurs, dont ceux de l’industrie aérospatiale, de la finance, des services de santé, des logiciels, de la défense, des transports et des télécommunications, ont bénéficié d’une notation de leur niveau de maturité CMMI et ont démontré qu’elles étaient des partenaires commerciaux et des fournisseurs compétents. Le CMMI Institute fait partie du groupe ISACA, l’association mondiale à but non lucratif qui se consacre à aider les professionnels à réaliser le potentiel positif de la technologie. Pour en savoir plus sur la façon dont le CMMI peut aider votre organisation à améliorer son niveau de performance, consultez le site CMMIinstitute.com.