October 29, 1999 |
Aetna Inc., the biggest U.S. health insurer, said U.S. regulators are reviewing its acquisitions, including this year's $1-billion purchase of a Prudential Insurance Co. of America unit, to determine if it properly accounted for costs. The Securities and Exchange Commission review is the latest in a series of problems with the Prudential HealthCare acquisition, which took half a year to pass regulatory muster and is losing money at a rate equal to $175 million a year.
September 29, 1999 |
Shares of Aetna Inc., the largest U.S. health insurer, fell 8% to a 52-week low after the company told investors that losses are accelerating at its newly purchased Prudential HealthCare unit. Aetna purchased the unit for $1 billion in August from Prudential Insurance Co. of America, which will pick up most of the losses through 2000. The unit lost $50 million in the first nine months of 1998 and is now losing $200 million a year, analysts said.
August 7, 1999 |
Aetna Inc. completed its purchase of Prudential Health Care to become the nation's largest health maintenance organization. The deal was consummated when New Jersey became the last state to approve the merger. As several states have done, New Jersey forced Aetna to meet several conditions, including promising to keep 90% of Prudential's doctors for the next three years. The American Medical Assn.
July 2, 1999 |
Foundation Health Systems Inc., Aetna Inc., Cigna Corp. and a number of other health maintenance organizations on Thursday said they'll drop Medicare coverage in certain California counties and elsewhere where they're having trouble making money. The companies' announcements follow a similar one Wednesday by PacifiCare Health Systems, the No. 1 operator of Medicare HMOs.
June 22, 1999 |
By the end of the summer, one in 12 Americans will be covered by a single health insurance company, Aetna-U.S. Healthcare, under a proposed merger approved Monday by federal regulators. The Justice Department's decision gives Connecticut-based Aetna Inc., already the nation's largest health plan, the green light to proceed with its proposed takeover of Prudential Insurance Co. of America's health-care division. Once completed, Aetna's membership would increase by 50% to 21 million nationwide.
April 29, 1999 |
Aetna Inc. said Wednesday its first-quarter earnings grew 15%, more than expected, as it raised premiums on employer health plans and shed unprofitable Medicare business. The nation's largest health insurer reported profit from operations of $168.2 million, or $1.08 a share, up from $146.6 million, or 90 cents, a year ago, including costs for fixing the year 2000 computer bug in its systems. Revenue for the Hartford-based company, including capital gains, jumped 23% to $5.7 billion.
December 11, 1998 |
The flood of defections from the ravaged managed-care business took a significant turn on Thursday, as Prudential Insurance Co. of America agreed to sell its ailing health-care operations to Aetna Inc. for $1 billion. The deal would affect about 6.6 million people nationwide, nearly 700,000 of them Californians, who are currently insured by Prudential. It would make Aetna U.S. Healthcare the nation's largest provider of managed care, with about 18.4 million members in HMOs alone.