Aetna HealthFund Study Finds Consumer-Directed Plans Offer Employers, Consumers Cost Savings - Manufacturing Close-Up

Employers that replaced their traditional health benefits planswith Aetna HealthFund consumer-directed plans saved $21.5 millionover a five-year period for every 10,000 members, based on a recentstudy of Aetna health care claims and utilization.

The study showed that members of consumer-directed plans accessedmore preventive care and screenings than people with traditionalPreferred Provider Organization (PPO) plans. In addition, AetnaHealthFund reported that plan members were more engaged health careconsumers and continued to get the care they need.

The study, which is the longest-running review of consumer-directed health plans in the industry, included more than 2 millionAetna members. The Company noted that the study compared people withPPOs and those with Aetna HealthFund plans, which consist of HealthSavings Accounts (HSA) and Health Reimbursement Arrangements (HRA).When compared to PPO members, HSA members used online tools to lookup cost information nearly three times as often and took a healthassessment twice as often.

'Aetna has been on the forefront of the consumer-directed healthplan movement since the beginning,' said Aetna CEO and PresidentMark Bertolini. 'The rising cost of health care has been a concernfor companies for many years now. We have shown that by workingtogether to engage consumers in their own care and by giving themeasy-to-understand tools and actionable information, we can helpcompanies keep their employees healthy and save money.'

While companies that switched completely to Aetna HealthFundplans reaped the highest cost savings, those that offered AetnaHealthFund HRA and HSA plans as one option experienced savings of $9million over five years for every 10,000 members enrolled in allhealth plan options. Among other findings, Aetna HealthFund saidthat members in the Company's plans:

-Spent 12 percent more on preventive care and accessed higherlevels of screenings for breast and cervical cancer compared tomembers in PPO plans. In particular, diabetics in the AetnaHealthFund plans accessed screenings at higher rates than diabeticmembers in PPO plans;

-Visited the emergency room for non-urgent care five percent lessthan members in a PPO plan; and

-Used the prescription drugs to treat chronic conditions, such asdiabetes, heart failure, high blood pressure and high cholesterol,at rates similar to PPO members.

The results also showed that HSAs continue to demonstrate moredramatic savings than HRAs. HSA members had 15 percent lower primarycare physician utilization for non-routine visits, which may includea cold or sore throat, the Company reported that 11 percent lowerspecialist utilization and 9 percent lower overall medical costs in2009.

The study looked at nearly 2.3 million members, which consistedof 1.8 million members whose employer offered an Aetna HealthFundproduct but who chose another product, and 498,000 Aetna HealthFundmembers. The study period extended from Jan. 1, 2002 to Dec. 31,2009.

In addition, this year the study analyzed the impact of plandesign on cost savings. Aetna HealthFund noted that employers thatoffered plans that required increased member responsibilityexhibited the best 2009 total cost trends. Specifically, those whooffered Aetna HealthFund plans with deductibles of at least $1,500for individuals experienced approximately 4 percent lower total costtrend than plans with deductibles that were less than $1,000.

The Aetna HealthFund reported that its study also providesemployers with examples of how to maximize the potential of theirAetna HealthFund plan, including:

-Designing a plan that includes appropriate levels of memberresponsibility;

-Encouraging employees to enroll in the consumer-directed planoption by lowering the employees' contribution levels or increasingthe amount of funds in the account;

-Communicating and educating members on how to use the plans; and

-Offering wellness programs and incentives for healthy behaviors.

Aetna is a diversified health care benefits company.

More Information:

www.aetna.com

www.aetnatools.com

Aetna Foundation Awards $100K in Grants to Colorado Nonprofits in 2010. - Health & Beauty Close-Up

Aetna and the Aetna Foundation together awarded nearly $100,000 in community grants and sponsorships in Colorado during 2010.

In a release, the Company said that the grants were made to organizations addressing a variety of health issues, including obesity in children and adults, racial and ethnic equity in health care, and needed improvements in the integration and coordination of health care services. In addition, grants were made in support of human services programs.

The five Colorado recipients were:

-The Rocky Mountain Youth Medical and Nursing Consultants, Inc.;

-University of Colorado Foundation;

-Aspen Brain Forum Foundation;

-The Women's Foundation of Colorado; and

-The Mile High United Way, Inc.

'Aetna is pleased and proud to support nonprofit organizations here in Colorado that are working to make a difference on key health and wellness challenges we face in our communities,' said Kay Thompson, Aetna's local market president for Colorado.

The Rocky Mountain Youth Medical and Nursing Consultants received a $30,000 grant to support its Weight Management Clinic for young people. The clinic provides case management for patients age 2 - 21 who struggle with obesity and are at risk of obesity-related diseases.

A $20,000 grant was awarded to the University of Colorado Foundation to support its Chart the Course campaign that educates young girls and women about the importance of good nutrition, increased physical activity and other healthy behaviors to decrease the prevalence of obesity, heart disease and diabetes.

A $25,000 sponsorship was awarded to the Aspen Brain Forum Foundation to support its conference for many of the world's preeminent scientists who are developing cutting-edge innovations in brain science.

The Women's Foundation of Colorado received a $15,000 sponsorship for the Annual Denver Luncheon, the Foundation's principal fund-raising event that supports the organization's programs to help women and girls be economically self-sufficient.

A $2,500 sponsorship was given to the Mile High United Way's Women's Leadership Luncheon, which raises money and awareness for the organization's Adult Self-Sufficiency Initiative to help individuals and families in the state become financially stable.

Nationwide during 2010, Aetna and the Aetna Foundation gave $15.6 million in grants and sponsorships. In addition, the Aetna employees, retirees and directors donated an additional $6.9 million through the company's matching gift program, bringing combined giving in communities where Aetna employees and customers live and work to $22.5 million. And, Aetna's employees donated more than dollars, generously giving nearly 335,000 hours of their personal time and talents in communities nationwide. Since 2003, Aetna employees have logged more than 2.3 million volunteer hours.

'During 2010, Aetna and the Aetna Foundation were pleased to provide grants and sponsorships to 661 nonprofit organizations nationwide, and to match the generosity of our employees to another 9,492 organizations within our communities,' said Anne C. Beal, M.D., M.P.H., Aetna Foundation president. 'We also made significant progress toward our goals of concentrating our grants on specific health issues of national concern, giving nearly $2.35 million to the fight against obesity, $1.24 million to improve racial and ethnic equity in health and health care, and more than $1 million to support better integrated health care in America.'

The Aetna Foundation is a national health foundation and the independent charitable and philanthropic arm of Aetna.

Aetna is a diversified health care benefits company.

More Information:

www.AetnaFoundation.org

www.aetna.com

Aetna, Aetna Foundation Update on 2011 Donations - Manufacturing Close-Up

Aetna Inc. and its philanthropic arm, the Aetna Foundation,awarded $19.2 million in 2011 to nonprofit organizations working toimprove people's health, particularly those from underservedpopulations, and to increase their access to health care.

According to a release, much of the funding was directed atreversing the obesity epidemic in adults and children, promotingracial and ethnic health equity and advancing integrated health careand care coordination. In addition, grants were made to programsaddressing veterans' needs, diversity and inclusion and communitydevelopment.

Aetna said its employees, retirees and directors donated anadditional $5.5 million in 2011 through the company's matching giftprogram, bringing combined giving in communities where Aetnaemployees and customers live and work to $24.7 million.Additionally, Aetna's employees generously volunteered nearly340,000 hours of their personal time and talents in 2011.

'Providing people with tools to live healthier lives drives ourbusiness and our philanthropy,' said Mark Bertolini, chairman, CEO,and president of Aetna Inc. and chairman of the Aetna Foundation.'Our 2011 charitable giving focused on helping people take charge oftheir health. We supported nutrition education, better access tohigh-quality health care and efforts to make our health care systemmore equitable and effective.'

The company noted that programs receiving grants include thosethat make fresh fruits and vegetables available in food deserts,offer prenatal care to women at high risk of premature birth, andinvestigate ways to enhance primary care that puts the patient'sneeds first.

In 2011, Aetna and the Aetna Foundation directed $4.8 million inthe fight against obesity, $3.2 million to eliminate racial andethnic disparities in health and health care, and $2.5 million topromote integrated health care and care coordination in primary caresettings.

Complementing the grant making by Aetna and the Aetna Foundationwas the commitment by thousands of Aetna employees to encouragehealthy lifestyles by donating their time to company-sponsoredvolunteer efforts or individual initiatives.

'Whether it's developing community gardens, teaching kids oralhealth, or participating in fund-raising walks and bike-a-thons,Aetna employees often focus on healthy living as their way to giveback in their communities,' said Floyd Green, head of Aetna'sCommunity Relations and Urban Marketing. 'Last year alone, ouremployees helped thousands of kids be physically active through ourprograms to combat childhood obesity. Aetna KidsPlay, for example,enables kids across the country to play soccer, baseball and othersports on teams coached by our employees and supported with Aetnasponsorships. We are proud to support our employees' long traditionof giving through our matching gifts program and volunteer grants.'

More information:

www.AetnaFoundation.org

www.aetna.com

Aetna Bestows in Excess of $330K to North Texas Nonprofits in 2009. - Health & Beauty Close-Up

Aetna and the Aetna Foundation in 2009 awarded 27 community grants and sponsorships in North Texas totaling $338,000, with a particular focus on disease prevention, obesity and health screening, the group reported.

In a release, the group noted that the contributions support its commitment to enhancing the quality of health care, and reducing racial and ethnic disparities. In total, the Aetna Foundation, Aetna and its employees, awarded more than $24 million nationally in 2009.

Among the community grants awarded in North Texas were:

-$75,000 to the American Heart Association;

-$25,000 to the American Diabetes Association Inc.;

-$25,000 to the Dallas Concilio of Hispanic Service Organizations;

-$15,000 to the Design Industries Foundation Fighting AIDS (DIFFA);

-$10,000 to the Fort Worth Hispanic Chamber of Commerce; and

-$5,000 to the Back to School Round-Up.

Twenty-one other organizations in North Texas also received Aetna grants or sponsorships including the African American Museum, AIDS Arms, American Lebanese Syrian Associated Charities, Attitudes and Attire, Black Tie Dinner, Dallas Foundation, Dallas Summer Musicals, DFW Business Group on Health, Foundation for the Education of Young Women, Greater Dallas Hispanic Foundation, Hispanic Wellness Coalition, International Dallas Communities, Junior Achievement of Dallas, Inc., Latin Arts Association of Fort Worth, North Texas Navidad en el Barrio Foundation, Open Arms, Inc., Parents Step Ahead, PWA Coalition of Dallas, Rebuilding Together-Greater Dallas, The Dallas Opera, and The Empowerment Project.

'Aetna is proud to support organizations in the Metroplex which are making great strides in targeting health care issues that affect our communities,' said Ralph Holmes, market head for Aetna in North Texas. 'As a responsible corporate citizen, we recognize our obligation to help address these critical needs.'

The Aetna Foundation awarded a $75,000 sponsorship to the American Heart Association for their 2009 Start! Heart Walk, which promotes physical activity and heart-healthy living in the community.

The American Diabetes Association received a $25,000 grant for their Por Tu Familia program, which provides workshops and activities to educate Hispanics about diabetes and the importance of making healthy food choices and exercising.

Under a $25,000 grant, the Dallas Concilio of Hispanic Service Organizations will use the Latino Initiative for Diabetes Education and Risk-Reduction (LIDER) program to produce a self-management course entitled Viviendo con la Diabetes ('Living with Diabetes). The course will give people the tools to live longer and healthier lives and reduce risk of further complications.

The Dallas Industries Foundation Fighting AIDS (DIFFA) received a $15,000 grant to fund the Aetna Health Award, which recognized a health care professional in the community who works with those living with HIV/AIDS.

The Aetna Foundation gave the Fort Worth Hispanic Chamber of Commerce (FWHCC)a grant in the amount of $10,000 to be used as sponsorship of the FWHCC's four fundraisers and to support the leadership and bilingual business development courses offered to its members.

The Back-To-School Round Up received a $5,000 grant to assist in providing 8,000 low income children in Tarrant County with backpacks, school supplies, gift cards for shoes, immunizations and haircuts.

'Aetna and the Aetna Foundation are proud to partner with organizations across the country in support of their good work, and we look forward to continued relationships as we focus our giving in key areas going forward,' said Anne Beal, MD, MPH, president of the Aetna Foundation. 'For 2010 and beyond, we are transitioning to a new approach that encompasses a more concentrated grant-making focus on specific health issues of national concern, enhanced communication and measurement of the impact of our grants, a more proportionate distribution of our charitable giving across the country, and a more holistic relationship with our community partners that capitalizes on our employee presence and the generosity and talents of our employee volunteers.'

The Aetna Foundation has opened the call for proposals for the 2010 grant cycle. Grant applicants should visit aetnafoundation.org for more information on how to apply for a grant and to learn more about the following Aetna Foundation focus areas for grant making in 2010 and beyond:

-Addressing the rising incidence of obesity among U.S. residents, including children;

-Promoting racial and ethnic equity in health and health care for common chronic conditions and for the prevention of infant mortality; and

-Advancing integrated health care, by:

-Improving coordination and communications among health care professionals;

-Creating informed and involved patients; and

-Promoting cost-effective, affordable care.

Aetna Enters the Capital Markets With the First Medical Benefits ILS Transaction.(insurance linked securities) - Mondaq Business Briefing

Introduction

The first health insurance linked securities (ILS) deal transferring the reinsured risk of medical benefit claims of a major U.S. health care company, Aetna Life Insurance Company (Aetna), to capital market investors closed on January 10, 2011. Aetna secured surplus capital relief through the transaction by entering into a quota share reinsurance agreement with Health Re, Inc. (Health Re), a newly formed, Vermont, special purpose financial captive insurance company. Simultaneously, Health Re entered into a three-year, indemnity-based, annual aggregate excess of loss reinsurance agreement (XOL reinsurance agreement) with Vitality Re Limited (Vitality Re), a newly formed, Cayman Islands exempted company licensed as a restricted Class B insurance company. Vitality Re sold $150 million of Class A notes, rated BBB by Standard & Poor's (S&P), to Goldman Sachs as initial purchaser, which were in turn sold to qualified institutional investors (also known as QUIBS) pursuant to Rule 144A of the Securities Act of 1933. The proceeds of the off ering were used by Vitality Re to collateralize and fund its obligations to Health Re (Aetna) under the XOL reinsurance agreement. Aetna made clear that this was the first of several such capital markets transactions it would undertake.

Traditionally, large U.S. health care companies, such as United Healthcare, Wellpoint, Aetna, CIGNA, and Coventry Health Care, have believed that their memberships (ranging from 5 to 50 million subscribers) adequately spread their risk, eliminating the need to transfer such risk to the capital markets or reinsurers. Aetna's motivation in engaging in this uncharted venture appears motivated solely by the cost of capital and not reimbursement on potential losses. Joseph M. Zubretsky, Aetna's chief financial officer, stated that the deal has 'improved [Aetna's] capital efficiency, enhanced our financial flexibility, and reduced our weighted average cost of capital.' The terms of the Aetna deal are favorable (in today's market) to investors, and future deals on similar terms would likely draw the interests of institutional investors looking for steady, low risk returns. If successful, Aetna's foray into the capital markets may herald the arrival of the health care industry in the ILS market and, perhaps, the reinsurance market as well. Given the size of the health care sector, the top five U.S. health care companies have combined annual revenues of more than $250 billion, its use of the reinsurance and the capital markets to transfer risk has the potential to fundamentally transform both of these markets.1

Terms of the Deal

In November 2010, Aetna announced that it was entering into two distinct, collateralized, three-year XOL reinsurance agreements with Vitality Re, which would then issue health insurance linked bonds to collateralize its obligations under the agreements. The deal had Aetna ceding a portion of its overall commercial group health insurance risks to its affiliated, self-funded reinsurance captive, Health Re. Health Re and Vitality Re would enter into the $200 million annual, aggregate XOL reinsurance agreements. Vitality Re would then enter into a tri-party repurchase agreement with Goldman Sachs who would sell it a pool of permitted securities in return for cash, with an obligation for Vitality Re to repurchase the securities at maturity. On a quarterly basis, Goldman Sachs, as the repurchase counterparty, pays a fee to Vitality Re and receives all of the income earned on the permitted investments. The pool of permitted investments would be over-collateralized, and the market value marked to market on a daily basis by the tri-party agent. If the market value of the collateral dropped below the required level on any given day, Goldman Sachs would be obligated to deliver additional permitted investments in order to maintain the required over collateralization. The repurchase agreement could be terminated by the repurchase counterparty following a change in law event.

The bonds were to have a target of $200 million and would be issued in two tranches. S&P rated the first tranche, $125 million Class A notes, at BBB-, and the second tranche, $75 million Class B notes, at BB. The attachment point for the reinsurance, and hence the point at which investor capital would be eroded by losses under the reinsurance agreement, was to be an agreed upon percentage of Aetna's medical benefi ts loss ratio (MBR), a ratio of claims to premium. The risk modeling for the transaction was provided by Milliman Inc. (Milliman), who created a simulation based stochastic model for the transaction. In rating the transaction, S&P said it expected actual results to differ somewhat from Milliman's modeled results. Accordingly, Milliman adjusted the probability of attachment using stress indicators and cited a pandemic as the transaction's greatest risk of loss. Finally, bondholders' return was projected at LIBOR plus 4.25 for the Class A notes and LIBOR plus 6.25 for the Class B notes.

The Aetna transaction closed on January 10, 2011 and followed closely on the November announcement, save for a few wrinkles and greater disclosure of the deal terms. Specifically, the three year agreement provided Aetna $150 million (not $200 million) in annual aggregate excess of loss coverage. Rather than issue two tranches of notes, Vitality Re issued a single $150 million tranche of the Class A notes. Accordingly, as the XOL reinsurance agreements were linked to each class of notes, Health Re entered into one XOL reinsurance agreement rather than two. The XOL reinsurance agreement has an attachment point of 104 percent of Aetna's MBR for 2011. The ratio is calculated on an annual aggregate basis, acting as an index of claims. If the MBR for 2011 reaches 114 percent, Aetna receives the full $150 million of coverage. The targets are to be reset (or renegotiated) for 2012 and 2013. The collateral is invested in highly rated assets and the account over-collateralized so the arrangement can provide credit for reinsurance for capital relief purposes.

Health Care Sector Transferring Risk

Aetna and its competitors are not unfamiliar with the reinsurance and securitization markets. In addition to medical benefits, most health care companies offer their employer clients both group life and group AD&D coverage, risks often reinsured by independent third-party reinsurers. Likewise, Triple-X, or redundant, reserving is a financial burden on life carriers who, in the past, have regularly offloaded these risks through securitization.2 Medical benefits risks, however, are fundamentally different from life and disability products. Medical benefits tend to be short tail risk; premium is more closely tied to experience and is adjusted annually, and reserves more accurately reflect future liabilities. Moreover, individual subscribers for the largest health care companies number in the millions. An individual medical catastrophe could hardly alter the loss experience for a health care company's largest clients, let alone the carrier's overall performance. As a result, the use of reinsurance and the capital markets in this segment has been limited. The increasing desire for capital surplus, and perhaps the uncertainty of health care reform and medical inflation, may make offloading such risks a more common practice in the health care sector.

Appeal for Investors

Most catastrophe bonds securitize U.S. hurricane and worldwide earthquake exposure. Investors are likely to welcome the Aetna transaction as it diversifies the ILS market with a low risk investment alternative. Aetna bondholders, like CAT bondholders, will lose all or a portion of their principal and interest on the notes if Vitality Re, as the issuer, is required to make loss payments under the XOL reinsurance agreement. The bondholders have limited recourse to the assets of Vitality Re and no recourse to the assets of Aetna or Health Re. The risk of loss, however, is estimated at 1 percent. Clearly the bondholders stand an excellent chance of realizing their full principal and interest. For the fourth quarter of 2010, Aetna disclosed that its earnings rose 30 percent as the health insurer's MBR declined to 83 from 85.4 percent a year earlier. By contrast, the attachment for 2011 under the XOL reinsurance agreement is 104 MBR, truly a catastrophe cover.

The Aetna transaction demonstrates that the convergence of traditional reinsurance and the capital markets is continuing to produce new issuances covering various types of ceded insurance business. Michael Millette, managing director at Goldman Sachs, indicated that the Vitality Re notes were placed with traditional ILS investors 'that were made up of Cat Funds and reinsurers.' He added that the number of investors was 'similar to that in a Cat Bond of the same size.' With many ILS market participants projecting a return to net growth in 2011, and new issuances between $5 billion to $6 billion, the 'health insurance linked bonds could represent an important, though relatively small, component of the overall market.' In this respect, it appears that the health care sector could potentially provide additional deal flow for yield hungry capital market investors who are also continuing to seek investments with relatively low correlations to other financial markets. With reinsurance rates projected to level off in 2011, the ILS market could represent a cost eff ective and diverse method for health insurers to transfer risk, address regulatory concerns, and enhance capital surplus. Whether third-party life and health reinsurers will attempt to capture a piece of this 'emerging' market remains to be seen.

Endnotes

1 Aetna alone served approximately 35.4 million people on September 30, 2010. Aetna off ers 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, medical management capabilities, and health care management services for medical plans.

2 Since 2007 the life carriers have been unable to securitize these risks that formerly guaranteed the bondholders' return through the purchase of insurance from mono-line insurers. These same carriers now enter into syndicated, long-dated letter of credit facilities.

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STOCK PERFORMANCE PROMPTS SHAKEUP AT AETNA.(BUSINESS) - Albany Times Union (Albany, NY)

Byline: MARION GAMMILL Bloomberg News

HARTFORD, Conn. -- Aetna Inc., the biggest U.S. health insurer, said Richard Huber resigned as chairman and chief executive amid shareholder pressure after the company's shares lost more than half their value since May.

Huber, 63, was replaced by William H. Donaldson, 68, a co-founder of Donaldson, Lufkin & Jenrette Inc. and a member of Aetna's board since 1977. Donaldson will head a company with three main businesses: U.S. health insurance; financial services; and insurance and financial planning outside the U.S.

The company offers various insurance policies to customers in the Capital Region, including health insurance to 200 area businesses, a company spokesman said last year. It also has been trying to expand operations of its health maintenance organization, Aetna U.S.Healthcare, into the area for the last four years, but so far has not succeeded in getting approval to do so from the state Health Department.

Aetna's stock has fallen from a 52-week high of 99 on concerns that the company isn't integrating acquisitions and controlling medical costs. Donaldson, former chief executive of the New York Stock Exchange, said Aetna has started an ``urgent review'' of its businesses and strategy.

``This is the first step,'' said John Schneider, a fund manager at Pimco Equity Advisors whose fund owns 450,000 Aetna shares. ``They need to recognize the value of the three pieces (of the company), particularly the international.''

Shares of Aetna, which rose slightly on news of the resignation, closed up 18.75 cents at $40.75 on the New York Stock Exchange.

Donaldson was named chairman, president and chief executive at a scheduled board meeting Friday. Aetna said it revoked a company rule that mandated retirement for executives at 65.

``Mr. Donaldson does not view his job as interim,'' said Joyce Oberdorf, an Aetna spokeswoman. ``The board has asked him not to approach this job as a caretaker.''

Huber, who had said he didn't think Aetna's share price accurately reflected the company's value, resigned amid pressure from shareholders to do something to reverse the stock decline. Before the resignation, some shareholders said the company needed to consider spinning off or selling some major business lines, possibilities Aetna had considered previously.

``This stock price is the same as it was in 1981,'' Schneider said. ``This is an incredibly, incredibly cheap stock.''

Analysts said, though, that the company needs to focus on getting its health-insurance operations under control. Aetna shares fell Feb. 8 after it said fourth-quarter medical costs had risen faster than analysts expected, driven up by drug cost increases and medical claims left over from the third quarter.

Aetna also faced a review by the U.S. Securities and Exchange Commission of the accounting it used for acquisitions during the past three years. That time period included Aetna's $8.9 billion purchase of U.S. Healthcare Inc. in 1996, the $1.1 billion purchase of New York Life Insurance Co.'s health-insurance unit in 1998, and last year's $1 billion purchase of Prudential Insurance Co. of America's managed-health unit.

``They need to stop focusing on being bigger and start running their business better,'' said Todd Richter, a Banc of America Securities analyst with a ``neutral'' rating on Aetna. ``This is a company that has performed poorly for 20 years through three management teams.''

Other shakeups are going on in the health-insurance industry as companies try to stay ahead of medical-cost increases being pushed up by new technology, new drugs and an aging population. Huber's resignation comes weeks after PacifiCare Health Systems Inc. chief executive Alan Hoops said he would retire from the Santa Ana, Calif.-based health insurer.

PacifiCare shares lost about one-third of their value in the last year, amid concerns that the company hadn't compensated for reduced growth in payments from Medicare, the government health plan for the elderly. PacifiCare is the biggest operator of health-maintenance organizations serving Medicare members.

Also earlier this month, Humana Inc., the second-biggest operator of Medicare HMOs, named senior vice president Michael McCallister president and chief executive of the Louisville, Ky.-based company. The appointment came about six months after Gregory Wolf, then the president and chief executive, resigned in the wake of a plunge in Humana shares following a profit warning last April.

Aetna, in contrast, has gone outside the managed health care insurance industry for its new chief executive. Donaldson helped found Donaldson, Lufkin & Jenrette in 1959 and was appointed U.S. undersecretary of state in 1973. He helped found Yale University School of Management in 1975 and served as its first dean until 1980.

Huber, who joined Aetna in 1995, also came from outside the managed-care industry.

Before joining Aetna, he was president and chief operating office at Grupo Wasserstein Perella, a Latin American unit of investment bank Wasserstein Perella & Co. He also worked at Continental Bank NA in Chicago, Chase Manhattan Corp. and Citicorp.

Huber became president and chief executive of Aetna in 1997 and was named chairman in 1998. He stood out in the managed-care industry, thanks to a history of sometimes inflammatory comments, analysts said.

Last July, Aetna and Huber were sued for allegedly defaming an attorney who had just won a record $120.5 million verdict against the company's California subsidiary.

``You had a skillful ambulance-chasing lawyer, a politically motivated judge and a weeping widow,'' Huber was quoted as saying after the verdict.

Huber subsequently apologized for the remarks, and in November, Aetna won dismissal of the defamation suit in court.

A.M. Best Affirms Ratings of Aetna Inc. and Its Subsidiaries. - Managed Care Weekly Digest

A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and issuer credit ratings (ICR) of 'a+' of the insurance and health maintenance organization (HMO) subsidiaries of Aetna Inc. (Aetna) (NYSE: AET). Concurrently, A.M. Best has affirmed the FSR of A (Excellent) and ICR of 'a' of Aetna Insurance Company of Connecticut. A.M. Best also has affirmed the ICR of 'bbb+' and debt ratings of Aetna. Additionally, A.M. Best has assigned a debt rating of 'bbb+' to the $500 million 4.125% senior unsecured notes, due 2021 of Aetna. The outlook for all ratings is stable. All the above companies are headquartered in Hartford, CT. (See below for a detailed listing of the companies and ratings.)

The rating affirmations of the lead operating entity, Aetna Life Insurance Company (ALIC), and the insurance and HMO subsidiaries of Aetna reflect their excellent operating and net income, good liquidity and solid risk-based capitalization levels. Aetna continues to generate good operating and net income results, which mainly are due to strong underwriting gains in the health care segment. Health care earnings were driven by favorable medical utilization rates in 2010. Aetna maintains a good level of liquidity through parent company cash, subsidiary dividends, an untapped $1.5 billion credit facility and its commercial paper program. The consolidated Aetna insurance operations' favorable net income has contributed to the group's solid capital level through retained earnings. The consolidated organization, driven by ALIC, has a strong risk-based capital ratio, and its capital and surplus level is more than adequate for the ratings (see also Health Insurance).

Partially offsetting these positive rating factors is the decline in Aetna's consolidated membership over the near term as commercial employer groups continue to be negatively affected by the state of the economy. This negative affect has pressured enrollment and premium growth in this business segment due to in-group disenrollment resulting from layoffs, decreased sales of complementary products and pricing pressures as employers look to contain benefit costs. Furthermore, growth in Aetna's Medicare lines had been hindered by the Centers for Medicare and Medicaid Services' imposed freeze on the plan, prohibiting it to actively market Medicare Advantage products in April 2010. While this did not affect the existing enrollees, the effect has obviously prevented growth in Aetna's membership for the January 2011 selling season. The sanctions against Aetna have since been lifted, and the plan will begin to actively enroll beneficiaries beginning in July 2011. Additionally, the company announced agreements to acquire Prodigy Health Group on April 28, 2011, and on June 13, 2011, the Medicare Supplement business of Genworth Financial, Inc., which includes Continental Life Insurance Company of Brentwood, Tennessee and its subsidiary, American Continental Insurance Company. The acquisitions may result in an increase in its debt-to-capital, should Aetna issue debt or utilize its commercial paper program to fund these acquisitions. A.M. Best expects Aetna's debt-to-capital to be in the range of or near 30% over the medium term.

The FSR of A (Excellent) and the ICR of 'a+' have been affirmed for the following subsidiaries of Aetna Inc.: Aetna Life Insurance Company Aetna Life & Casualty (Bermuda) Ltd. Aetna Health Inc. (a Connecticut corporation) Aetna Health Inc. (a Florida corporation) Aetna Health Inc. (a Georgia corporation) Aetna Health Inc. (a Maine corporation) Aetna Health Inc. (a New Jersey corporation) Aetna Health Inc. (a New York corporation) Aetna Health Inc. (a Pennsylvania corporation) Aetna Health Inc. (a Texas corporation) Aetna Health Insurance Company of New York Aetna Health Insurance Company Aetna Health of California Inc. Aetna Dental Inc. (a New Jersey corporation) Aetna Dental Inc. (a Texas corporation) Aetna Dental of California The following debt ratings have been affirmed: Aetna Inc.-

-- 'bbb+' $750 million 6.0% of senior unsecured notes, due 2016

-- 'bbb+' $500 million 6.5% of senior unsecured notes, due 2018

-- 'bbb+' $800 million 6.625% of senior unsecured notes, due 2036

-- 'bbb+' $700 million 6.75% of senior unsecured notes, due 2037

-- 'bbb+' $750 million 3.95% of senior unsecured notes, due 2020

-- AMB-2 on commercial paper

The following indicative ratings on universal shelf securities have been affirmed: Aetna Inc.-

-- 'bbb+' on senior unsecured debt

-- 'bbb' on subordinated unsecured debt

-- 'bbb-' on preferred stock

The principal methodology used in determining these ratings is Best's Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best's rating process and highlights the different rating criteria employed. Additional key criteria utilized include: 'Rating Health Insurance Companies'; 'Understanding BCAR for Life and Health Insurers'; 'Understand Universal BCAR'; 'Risk Management and the Rating Process for Insurance Companies'; 'Rating Members of Insurance Groups'; 'Rating Commercial Paper'; 'Assessing Country Risk'; and 'A.M. Best's Ratings & the Treatment of Debt.' Methodologies can be found at www.ambest.com/ratings/methodology. Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright [c] 2011 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

Keywords: Investing, Investment, Legal Issues, Stock Market, Health Policy.

Aetna's Bismarck Employees Reach $1 Million Milestone in Volunteer Council Donations to Local Charities. - Cancer Weekly

By a News Reporter-Staff News Editor at Cancer Weekly -- Aetna (NYSE: AET) employees at the company's Bismarck, N.D. facility recently celebrated reaching the $1 million mark in donations to area charities over the past 15 years. Aetna hosted a 'Thanks a Million' event to celebrate the effort of the local Aetna Volunteer Council, whose members have been among the Bismarck community's most generous contributors of funds and volunteer hours, aiding more than 85 charitable organizations (see also Aetna).

'The Aetna employees in Bismarck continuously open their hearts and their wallets to help those in need in their communities,' said Shelly Ferensic, Aetna's head of Claim and Provider Services Operations. 'They should be proud of the shining example they set of spirit, caring and dedication, and they deserve to be recognized for reaching this monumental milestone.'

The Bismarck Aetna Volunteer Council was formed in 1997, after the Grand Forks flood displaced more than 60,000 people and a fire damaged much of the downtown area. Last year, they responded with similar generosity to another devastating flood, logging more than 9,300 volunteer hours.

The Bismarck office is one of Aetna's top 10 United Way contributors, and has been one of the top fund raisers for the American Cancer Society's Relay for Life walk in each of the last five years. Bismarck employees also have been a top fund-raising team for the Charles Hall Youth Services walk-a-thon, and received the Hope Giver Extraordinaire Crystal Award in 2010 from the Bismarck Cancer Center. Aetna also received the Central Dakota Humane Society Board Presidential Award in 2010.

'Every day, the American Cancer Society saves 350 lives from cancer, supporting people with cancer through our programs and services,' said Sara Haugen, community relations manager with American Cancer Society. We couldn't do this without all of our dedicated volunteers and donors. The Aetna employees have truly made a difference in the fight, and I can't thank them enough.'

Aetna and the Aetna Foundation work hard to improve conditions in the communities where our people live and work. Employees around the nation show their selfless spirit by volunteering hundreds of thousands of hours each year and donating millions of dollars to their favorite nonprofit organizations across the country.

North Dakota employees topped participation rates for Aetna's volunteer population in any single office in 2011, and logged a total of 15,073 hours. They were named Aetna's 'Volunteer State of the Year.'

'Aetna's employees have some of the biggest hearts you'll ever see, and they are quick to respond in times of need,' said Theresa Moravec, who is treasurer of the Aetna Volunteer Council in Bismarck. Each quarter, Moravec distributes about $10,000 in employee donations to local organizations. About Aetna Aetna is one of the nation's leading diversified health care benefits companies, serving approximately 36.1 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 and health information technology services. Our 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.

Keywords for this news article include: Aetna, Cancer, Oncology, Technology.

Aetna Foundation Contributed $19 Million Nationally In 2005 - US Fed News Service, Including US State News

The Aetna Foundation issued the following news release:

Aetna (NYSE: AAET) today announced that more than $19 million in grant funding was awarded nationally in 2005 -- $2.6 million of which was awarded through the Foundation's Regional Community Health Grant Program funding 95 nonprofit organizations in 20 states. The other $16.4 million was distributed through Aetna and the Aetna Foundation in the form of matching grants and direct awards to fund health, education, civic and community, arts and culture, and diversity initiatives.

The Regional Community Health Grants Program distributed the $2.6 million in six geographic regions, focusing on issues such as Diabetes, Cultural Competency, Children's Oral Health and Depression. Since Aetna's Regional Community Health Grants Program began in 2001, Aetna and the Aetna Foundation have awarded more than $11 million, including $8 million for disparities in health programs.

'Working to build healthy communities, Aetna and the Aetna Foundation are addressing racial and ethnic disparities in health care,' said Marilda L. Guundara, President of the Aetna Foundation. 'For five years, the Regional Community Health Grants Program has been a major part of that effort by funding programs that improve understanding of racial and cultural diversity, and provide access to quality health care.'

In addition to grants, the Aetna Foundation encourages Aetna's 27,000 employees to support their communities. Through local volunteer councils in their offices, Aetna employees have dedicated more than 650,000 hours of service to strengthen and enrich communities and towns across the country. As part of this initiative, Aetna and the Aetna Foundation match much of the money employees raise for specific charities, doubling the amount donated. Aetna employees contributed over $825,000 for disaster relief efforts in 2005, which included the tsunami and the hurricanes in the Gulf states. Through the company's matching gifts program, Aetna, the Aetna Foundation and its employees contributed over $1.6 million.

The Aetna Foundation is the independent charitable and philanthropic arm of Aetna Inc. Founded in 1972, the Foundation seeks to help build healthy communities by funding initiatives that improve the quality of life where our employees and customers work and live. Since 1980, the Aetna Foundation has contributed more than $270 million in grants, scholarships and social investments. The Foundation's giving is focused on reducing racial and ethnic disparities in health care. Additional information about the Aetna Foundation is available at www.aetna.com/foundation.

Aetna is one of the nation's leading diversified health care benefits companies, serving approximately 27.9 million unique members 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, long-term care and disability plans, and medical management capabilities. Our customers include employer groups, individuals, college students, part-time and hourly workers, health plans and government-sponsored plans. www.aetna.com.

Aetna Takes Steps to Help Earthquake Victims in Haiti. - Insurance Weekly News

Aetna (NYSE: AET) has opened its employee assistance programs to all members, employees and their families who may have loved ones affected by the earthquake in Haiti. The company is also reaching out to its customers with employees in Haiti to offer medical evacuation for those injured and other assistance. For families filing a life insurance claim, Aetna is expediting the claim payment process and extending claim submission dates.

'We are greatly saddened by this tragedy, and we extend our thoughts and deepest sympathies to the families and loved ones of those affected,' said Chairman and CEO Ronald A. Williams. 'Our members and employees with family members in Haiti are of the utmost concern to us, and we are committed to supporting them through this difficult time.'

The Aetna Foundation has initiated a dollar-for-dollar match for employee disaster relief donations to help the relief efforts in Haiti. Aetna's Community Relations group has activated its 47 Aetna Volunteer Councils to engage with relief agencies to respond to this disaster by collecting goods and funds and offering other assistance.

Aetna's international or U.S.-based customers, members or employees who need help can reach Aetna at the following toll-free numbers. Aetna Global Benefits International Service Center and International Employee Assistance Program: 1-800-231-7729 (toll-free) or 1-813-775-0190 (collect) Aetna U.S. Employee Assistance Program: 1-888-AETNA-EAP (1-888-238-6232) or 866-843-6323 (for the hearing impaired) Aetna U.S. Member Services: 1-800-443-AETNA (1-800-443-2386) Aetna Group Life: 1-800-523-5065 Aetna Behavioral Health is offering its Employee Assistance Program (EAP) to all Aetna plan sponsors, regardless of whether or not they are Aetna EAP customers, during this time of need. Aetna members can contact Aetna EAP 24/7 for telephonic consultation, support, information and referral to a full spectrum resources including community-based, governmental and relief agencies.

Aetna's EAP professionals have experience dealing with traumatic events from both an organizational and individual perspective. In addition to providing direct support to members, employees and their families, EAP workplace consultants are ready to provide consultation to Aetna's employer customers to help them address the needs of their workforce.

Aetna Global Benefits' International Health Advisory Team is also available 24/7 as a single point of contact to provide members with additional support, which includes the coordination of medical evacuations. This group of AGB-dedicated nurses is focused on providing the highest level of care and can be reached by calling the International Service Center.

Aetna Group Life is helping families in need during these tragic circumstances by expediting the claim process, extending deadlines for filing claims, and modifying procedures to speed payment. About the Aetna Foundation The Aetna Foundation is the independent charitable and philanthropic arm of Aetna Inc. Founded in 1972, the Foundation promotes wellness, health, and access to high-quality health care for everyone, while supporting the communities Aetna serves. The Foundation's 2010 giving will focus on addressing the rising rate of obesity in the U.S., promoting racial and ethnic equity in health care, and advancing integrated health care. Since 1980, Aetna and the Aetna Foundation have contributed over $359 million in grants and sponsorships, and will give up to $18.5 million in 2009. For more information on the Aetna Foundation visit www.aetnafoundation.org. About Aetna Aetna is one of the nation's leading diversified health care benefits companies, serving approximately 36.3 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.

Keywords: AT&T, Aetna, Foundation, Fund Raising, Insurance, Other Government, Other Philanthropy, Other Policy Issues, Philanthropy, Professional Services, Public Policy and Government, Telecommunications.

Aetna Foundation Awards Grants in Excess of 100K to Washington State Nonprofits in 2010. - Health & Beauty Close-Up

Aetna and the Aetna Foundation have awarded $105,278 in community grants and sponsorships in Washington State during 2010.

In a release, the groups said that the grants were made to organizations addressing a variety of health issues, including obesity among adults and children, racial and ethnic equity in health care, and needed improvements in the integration and coordination of health care services. In addition, grants were made in support of human services programs to improve the lives of Washingtonians.

The seven Washington recipients were:

-American Diabetes Association Western Washington;

-American Heart Association;

-Eastside Domestic Violence Program (EDVP);

-Health Care Conference Administrators;

-Lifelong AIDS Alliance;

-Senior Services; and

-Washington State Medical Education and Research Foundation.

'Aetna is pleased and proud to support nonprofit organizations here in Washington that are working to make a difference on key health and wellness challenges we face in our communities,' said Norm Seabrooks, Aetna's local market president for Washington State.

A $25,000 sponsorship was awarded to the American Diabetes Association Western Washington State and Idaho for the 2011 ADA Expo, Step Out Walk Team and Tour de Cure.

The American Heart Association received a $2,500 sponsorship for the Go Red for Women Luncheon, an educational luncheon that promotes healthy lifestyles.

Eastside Domestic Violence Program was awarded a $5,000 grant for its Safe Passage Breakfast, which raises funds that will provide safety, support and access to education and training for victims and their children.

The Health Care Conference Administrators received an $18,000 grant for the National Accountable Care Organization Summit.

A $10,000 sponsorship was given to the Lifelong AIDS Alliance for its 24th Annual Seattle AIDS Walk, which raises money to improve the access of HIV/AIDS-positive people to health services.

The Washington State Medical Education and Research Foundation received a $15,000 grant to develop and implement outreach events to improve the health and well being of Washingtonians.

A $30,000 grant was awarded to Senior Services of King County for its six-week workshop, Living Well with Chronic Conditions, that helps older adults manage their health conditions.

Nationwide during 2010, Aetna and the Aetna Foundation gave $15.6 million in grants and sponsorships. In addition, the Aetna employees, retirees and directors donated an additional $6.9 million through the company's matching gift program, bringing combined giving in communities where Aetna employees and customers live and work to $22.5 million. And, Aetna's employees donated more than dollars, generously giving nearly 335,000 hours of their personal time and talents in communities nationwide. Since 2003, Aetna employees have logged more than 2.3 million volunteer hours.

'During 2010, Aetna and the Aetna Foundation were pleased to provide grants and sponsorships to 661 nonprofit organizations nationwide, and to match the generosity of our employees to another 9,492 organizations within our communities,' said Anne C. Beal, M.D., M.P.H., Aetna Foundation president. 'We also made significant progress toward our goals of concentrating our grants on specific health issues of national concern, giving nearly $2.35 million to the fight against obesity, $1.24 million to improve racial and ethnic equity in health and health care, and more than $1 million to support better integrated health care in America.'

The Aetna Foundation is a national health foundation and the independent charitable and philanthropic arm of Aetna.

Aetna is a diversified health care benefits company.

More Information:

www.aetna.com

Aetna Foundation Awards $170K Grants and Sponsorships to Arizona Nonprofits in 2010. - Health & Beauty Close-Up

Aetna and the Aetna Foundation together awarded $170,000 in grants and sponsorships in Arizona during 2010, the groups announced.

In a release, the groups said that the grants were made to organizations addressing obesity among adults and children, racial and ethnic equity in health care, and needed improvements in the integration and coordination of health care services, as well as other health issues.

The six Arizona recipients were:

-Tucson Medical Center;

-Accept the Challenge, Inc.;

-Cesar E. Chavez Foundation;

-AZ Lost Boys Center;

-Celebrity Fight Night Foundation; and

-American Heart Association.

'Aetna is pleased and proud to support nonprofit organizations here in Arizona that are working to make a difference on key health and wellness challenges we face in our communities,' said Kay Thompson, Aetna's local market president for Arizona.

The Tucson Medical Center was awarded a $100,000 grant to support Girls on the Run, a national prevention program that encourages preteen girls to develop self-respect and healthful lifestyles through running. The program combines training for a 3.1 mile run with a curriculum that helps girls learn to make good choices and avoid risky adolescent behaviors.

In Phoenix, a $20,000 grant from the Aetna Foundation to Accept the Challenge is supporting the introduction of a school-based nutrition and fitness program to 1200 students in grades three through six from low-income Hispanic families. The program, Operation Tone-Up is an evidence-based program for preventing childhood obesity that has been endorsed by U.S. Secretary of Education Arne Duncan because of its effectiveness in helping students become healthier and more focused in school. The program features daily structured exercise and classroom lessons on nutrition and healthy living that are linked to academic curriculum standards.

Also in Phoenix, the Cesar E. Chavez Foundation received $5,000 in sponsorship support for the Cesar Chavez Familias Saludables program, an effort that promotes healthy nutritional and lifestyle choices among Latinos in the metropolitan area before and during the holiday season.

The AZ Lost Boys Center received a $25,000 grant for its behavioral health programs for young refugees from Sudan's brutal civil war. The organization provides a welcoming safe haven for the so-called Lost Boys and Girls of Sudan to gather socially, learn important life skills, and receive assistance in many areas including education, employment, crisis intervention, and emotional health support.

The Celebrity Fight Night Foundation, Inc. received a $15,000 sponsorship for Fight Night XVI, which raised funds for the Muhammad Ali Parkinson Center at the Barrow Neurological Institute in Phoenix.

The American Heart Association received a $5,000 sponsorship for the Phoenix Heart Ball, which raise funds and awareness to promote prevention of cardiovascular disease through education.

Nationwide during 2010, Aetna and the Aetna Foundation gave $15.6 million in grants and sponsorships. In addition, Aetna employees, retirees and directors donated an additional $6.9 million through the company's matching gift program, bringing combined giving in communities where Aetna employees and customers live and work to $22.5 million. And, Aetna's employees donated more than dollars, generously giving nearly 335,000 hours of their personal time and talents in communities nationwide. Since 2003, Aetna employees have logged more than 2.3 million volunteer hours.

'During 2010, Aetna and the Aetna Foundation were pleased to provide grants and sponsorships to 661 nonprofit organizations nationwide, and to match the generosity of our employees to another 9,492 organizations within our communities,' said Anne C. Beal, M.D., M.P.H., Aetna Foundation president. 'We also made significant progress toward our goals of concentrating our grants on specific health issues of national concern, giving nearly $2.35 million to the fight against obesity, $1.24 million to improve racial and ethnic equity in health and health care, and more than $1 million to support better integrated health care in America.'

The Aetna Foundation is a national health foundation and the independent charitable and philanthropic arm of Aetna.

Aetna is a diversified health care benefits company.

More Information:

www.aetna.com

Aetna Accountable Care Organizations Proving That Improved Quality, Lower Costs Are Possible. - Managed Care Weekly Digest

Three years ago Aetna (NYSE:AET) began working with doctor groups, specialists and health care facilities to create a more personalized, connected and accountable way to provide health care. Today, Aetna's early accountable care organization (ACO) model is improving health care quality and lowering the cost of care (see also Medicare and Medicaid).

Beginning in 2012, government incentives will give health plans, doctors and hospitals more reason to work together in a closer, more coordinated way. Aetna began testing the ACO model in 2007 among doctors who cared for approximately 20,000 Aetna Medicare Advantage members. The model combines

personalized care management and support

advanced technology that connects doctors with up-to-date patient information and current medical evidence

financial arrangements that encourage doctors to share in the improvement of patients' health and reflects additional time and resources needed to care for patients with chronic conditions

The Commonwealth Fund described one effort involved in this model, the use of embedded case managers, in a recent case study (Sept. 2010). Aetna's data on the model suggest that it has decreased duplicate or unnecessary services and improved health outcomes. For example, compared to unmanaged Medicare, the Medicare Advantage members required 43 percent less acute (critical) hospital care in 2010.

'Many ACO and medical home models are in the testing phase. Aetna is three years ahead of the curve. We have proven results that show coordinated care leads to better outcomes,' says Randy Krakauer, M.D., Aetna's national Medicare medical director. ACO benefits are a reality at Aetna Aetna extended the team of people who assist Aetna's Medicare Advantage members. Aetna nurse case managers worked with doctors in 36 primary care practices, coordinating care to help members monitor and manage their health conditions. They also helped members and doctors use personal health records as a communications and tracking tool. ActiveHealth's CareEngine[R] System identified and alerted the care team to actionable gaps in a patient's care.

Aetna then helped pair the doctor groups with specialists, hospitals and community social services such as state departments on Aging for in-home services, home-delivered meals, caregiver support and respite care, and other community services.

Aetna's data show that nearly all of the medical groups participating in the Medicare Advantage program met their performance targets. These targets included follow-up office visits with members within 30 days of leaving the hospital and two office visits per year with members with certain chronic conditions. Participating doctors reported that the program saved time for them and their office staff. Aligning incentives and shared accountability An investment is required for the success of this model, and Aetna was willing to invest, Krakauer says. 'Physicians and facilities earned additional payments for meeting certain quality measures that helped patients stay healthier so they can avoid more extensive care,' he says. 'These investments helped connect resources and balance accountability of the patient's health throughout the system.'

One participating doctor, Thomas Claffey, M.D., is a medical director of NovaHealth, an independent practice association based in Portland, Maine. The practice has had Aetna case managers working with its multispecialty group practice since January 2008.

'Our work with Aetna on this model has shown how a provider organization and a health plan can have aligned incentives to improve health care delivery, make patients healthier and create value for the health care system,' Claffey said. Aetna expanding on early ACO success Many of the doctors involved in Aetna's Medicare Advantage models are expanding their programs, such as adding weekend hours or creating condition-specific outreach. Aetna also is actively working with a number of physician groups, hospitals and integrated delivery systems nationwide to create a range of ACO models, including those for commercial medical plans.

Aetna and its ActiveHealth Management subsidiary offer many capabilities that can help create an ACO. 'We can help a medical group with data management and case management, areas in which we have expertise and a track record. We do this now with several medical groups across the country,' Krakauer says. 'We are already making a difference in the quality and cost of health care for thousands of our members with our accountable care solutions, and we continue to expand our offerings.' About Aetna Aetna is one of the nation's leading diversified health care benefits companies, serving approximately 35.4 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. To learn more about Aetna's innovative online tools, visit www.aetnatools.com.

Keywords: Aetna, Finance, Financial, Health Policy, Hospital, Information Technology, Information and Data Management, Investing, Investment, Legal Issues, Medicare, Medicare and Medicaid.

Aetna Granted $50,000 to Oregon Nonprofits. - Managed Care Weekly Digest

Two Oregon nonprofits each were awarded $25,000 in support from Aetna (NYSE: AET) to further their work in promoting healthy lifestyles and healthy eating. The Oregon Health and Science University Foundation and the Community Food Security Coalition, both based in Portland, received the funds to support 2011 programs (see also Obesity).

'Aetna is pleased and proud to support nonprofit organizations here in Oregon that are working to make a difference on key health and wellness challenges we face in our communities, said Norm Seabrooks, Aetna's local market president for Oregon.

The Oregon Health and Science University Foundation received a $25,000 grant to support its month-long activity challenge Get Going Oregon 2011. Kicked off on Saturday, July 23 with a health fair and 5k walk, the program engages teens and adults to use a web-based tracking tool to input their physical activities, such as swimming, biking, walking and wheelchair racing. Participants are encouraged to average 10,000 activity steps per day throughout the month of August. Now in its second year, Get Going Oregon aims to reduce the impact, incidence and prevalence of diabetes and obesity.

Aetna also bestowed $25,000 in funding to the Community Food Security Coalition to sponsor the first national conference devoted to examining local food policies. The conference, held on May 23, brought together several hundred healthy food advocates, elected officials, planners, and public sector staff to discuss how communities can implement policies at the state and local levels to improve the availability of nutritious, healthful and affordable food for its residents.

Nationwide during 2010, Aetna and its charitable giving arm the Aetna Foundation gave $15.6 million in grants and sponsorships. In addition, the Aetna employees, retirees and directors donated an additional $6.9 million through the company's matching gift program, bringing combined giving in communities where Aetna employees and customers live and work to $22.5 million. And, Aetna's employees donated more than dollars, generously giving nearly 335,000 hours of their personal time and talents in communities nationwide. Since 2003, Aetna employees have logged more than 2.3 million volunteer hours.

'During 2010, Aetna and the Aetna Foundation were pleased to provide grants and sponsorships to 661 nonprofit organizations nationwide, and to match the generosity of our employees to another 9,492 organizations within our communities,' said Anne C. Beal, M.D., M.P.H., Aetna Foundation president. 'We also made significant progress toward our goals of concentrating our grants on specific health issues of national concern, giving nearly $2.35 million to the fight against obesity, $1.24 million to improve racial and ethnic equity in health and health care, and more than $1 million to support better integrated health care in America.'

More information about Aetna's and the Aetna Foundation's 2010 efforts to help improve the health of children and adults and to make our health care system more equitable and effective can be found online in the multi-media annual giving report Investing in Our Future. About the Aetna Foundation The Aetna Foundation, Inc. is the independent charitable and philanthropic arm of Aetna, Inc. Since 1980, Aetna and the Aetna Foundation have contributed $394 million in grants and sponsorships, including $15.6 million in 2010. As a national health foundation, we promote wellness, health, and access to high-quality health care for everyone. This work is enhanced by the time and commitment of Aetna employees, who have volunteered more than 2.3 million hours since 2003. Our current giving is focused on addressing the rising rate of adult and childhood obesity in the U.S.; promoting racial and ethnic equity in health and health care; and advancing integrated health care. For more information, visit www.AetnaFoundation.org. About Aetna Aetna is one of the nation's leading diversified health care benefits companies, serving approximately 36.5 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 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.

Keywords: Bariatrics, Overnutrition, Diet and Nutrition, Nutrition Disorders.

Aetna Awarded $125,000 to North Carolina Non-Profits. - Heart Disease Weekly

Aetna (NYSE: AET) and the Aetna Foundation in 2008 awarded community grants and sponsorships in North Carolina totaling $125,000, supporting programs that focus on promoting healthier work places; helping students better understand depression; and targeting childhood obesity (see also Aetna).

Aetna provided grants of $75,000 to the American Heart Association's Charlotte chapter; and grants of $25,000 each to Discovery Place Inc. and the Charlotte-Mecklenburg County schools.

Aetna provided $75,000 to the American Heart Association to fund its 'Start! Charlotte' program, which is part of the organization's ground-breaking campaign to engage employers and individuals and create a culture of physical activity. It promotes physical activity through workplace walking programs, and is designed to help employees reduce their risk for heart disease and stroke, while leading longer, stronger, healthier lives.

The $25,000 grant to the Charlotte-Mecklenburg County schools will help fund the 'Through My Eyes I See a Future' program, which is developing school and community resources to remove the stigma of mental illness and increase awareness that depression can be treated successfully. A group of community partners in Charlotte created a video on mental-health issues, with area students telling their stories of isolation. The program aims to use the schools to influence health-related behaviors of students, promoting positive peer influence and enhancing 'protective factors.'

The Aetna Foundation's $25,000 grant to Discovery Place Inc. will support the 'You Are What You Eat' nutrition program. With childhood obesity on the rise in Charlotte and Mecklenburg County, Discovery Place is focusing on promoting better nutritional choices. The program, administered by the Centers for Disease Control and Prevention, will monitor priority health-risk behaviors and the prevalence of obesity among area youth. It will be delivered to 2,300 fourth-grade students in the county's 25 lowest socio-economic schools.

'Aetna is committed to helping people in North Carolina live healthier, more productive lives,' said Brian O'Shields, Aetna's sales vice president for North Carolina. 'By funding programs that raise awareness of these issues, and the risk they hold, we're hoping to improve health outcomes for residents across the state.'

Aetna provides health benefits to more than 275,000 people in North Carolina. About the Aetna Foundation The Aetna Foundation is the independent charitable and philanthropic arm of Aetna Inc. Founded in 1972, the Foundation seeks to help build healthy communities by funding initiatives that improve the quality of life where Aetna employees and customers work and live.

The Foundation's giving is focused on health, diversity and employee community involvement, with broader programs in our home state of Connecticut. Since 1980, the Aetna and the Aetna Foundation have contributed over $334 million in grants, sponsorships and social investments. In 2007, Aetna and the Aetna Foundation contributed $24.5 million nationally.

Additional information about the Foundation is available about the Aetna Foundation is available at www.aetna.com/foundation 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.

Keywords: Alternative Medicine, Bariatrics, Behavior, Depression, Heart Disease, Mental Health, Mental Illness, Obesity, Psychiatry, Therapy, Treatment, Aetna.

Aetna, Aetna Foundation, and Employees Gave $24.7 Million to Nonprofits in 2011. - Obesity, Fitness & Wellness Week

Aetna Inc. (NYSE: AET) and its philanthropic arm, the Aetna Foundation, awarded $19.2 million in 2011 to nonprofit organizations working to improve people's health, particularly those from underserved populations, and to increase their access to high-quality health care. Much of the funding was directed at reversing the obesity epidemic in adults and children, promoting racial and ethnic health equity and advancing integrated health care and care coordination. In addition, grants were made to programs addressing veterans' needs, diversity and inclusion and community development (see also Obesity).

Aetna employees, retirees and directors donated an additional $5.5 million in 2011 through the company's matching gift program, bringing combined giving in communities where Aetna employees and customers live and work to $24.7 million. Additionally, Aetna's employees generously volunteered nearly 340,000 hours of their personal time and talents in 2011.

'Providing people with tools to live healthier lives drives our business and our philanthropy,' said Mark Bertolini, chairman, CEO, and president of Aetna Inc. and chairman of the Aetna Foundation. 'Our 2011 charitable giving focused on helping people take charge of their health. We supported nutrition education, better access to high-quality health care and efforts to make our health care system more equitable and effective.'

Programs receiving grants include those that make fresh fruits and vegetables available in food deserts, offer prenatal care to women at high risk of premature birth, and investigate ways to enhance primary care that puts the patient's needs first.

In 2011, Aetna and the Aetna Foundation directed $4.8 million in the fight against obesity, $3.2 million to eliminate racial and ethnic disparities in health and health care, and $2.5 million to promote integrated health care and care coordination in primary care settings.

Complementing the grant making by Aetna and the Aetna Foundation was the commitment by thousands of Aetna employees to encourage healthy lifestyles by donating their time to company-sponsored volunteer efforts or individual initiatives.

'Whether it's developing community gardens, teaching kids oral health, or participating in fund-raising walks and bike-a-thons, Aetna employees often focus on healthy living as their way to give back in their communities,' said Floyd Green, head of Aetna's Community Relations and Urban Marketing. 'Last year alone, our employees helped thousands of kids be physically active through our programs to combat childhood obesity. Aetna KidsPlay, for example, enables kids across the country to play soccer, baseball and other sports on teams coached by our employees and supported with Aetna sponsorships. We are proud to support our employees' long tradition of giving through our matching gifts program and volunteer grants.' About the Aetna Foundation The Aetna Foundation, Inc. is the independent charitable and philanthropic arm of Aetna Inc. Since 1980, Aetna and the Aetna Foundation have contributed more than $413 million in grants and sponsorships, including $19.2 million awarded in 2011. As a national health foundation, we promote wellness, health, and access to high-quality health care for everyone. This work is enhanced by the time and commitment of Aetna employees, who have volunteered more than 2.6 million hours since 2003. Our current giving is focused on addressing the rising rate of adult and childhood obesity in the U.S.; promoting racial and ethnic equity in health and health care; and advancing integrated health care. For more information, visit www.AetnaFoundation.org. About Aetna Aetna is one of the nation's leading diversified health care benefits companies, serving approximately 36.4 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, medical management capabilities, health care management services for Medicaid plans and health information exchange technology services. Our 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.

Keywords: Bariatrics, Overnutrition, Diet and Nutrition, Nutrition Disorders.

Aetna Gives $170K to Washington Nonprofits in 2009. - Health & Beauty Close-Up

Aetna and the Aetna Foundation in 2009 awarded 12 community grants and sponsorships in Washington totaling $170,000, with a particular focus on disease prevention, obesity and health screening, the group reported.

In a release, the group noted that the contributions support its commitment to enhancing the quality of health care, and reducing racial and ethnic disparities. In total, the Aetna Foundation, Aetna and its employees, awarded more than $24 million nationally in 2009.

The twelve Washington grant recipients were:

-The Children's Hospital Foundation;

-International Community Health Services;

-Solid Ground;

-Washington State Department of Health;

-Washington State Hospital Association;

-Center for Multicultural Health;

-ONFE Hispanic Foundation;

-Swedish Medical Center Foundation;

-Eastside Domestic Violence Program;

-Seattle Central Community College;

-Lifelong AIDS Alliance; and

-Susan G. Komen for the Cure.

'Aetna is proud to support organizations in Oregon which are making great strides in targeting health care issues that affect our communities,' said Norm Seabrooks, market head for Aetna in Washington. 'As a responsible corporate citizen, we recognize our obligation to help address these critical needs.'

The Aetna Foundation awarded a $25,000 grant to the Children's Hospital Foundation for their Adaption of Child Obesity Treatment for a Low-Income Setting program to address effective treatment for children in disadvantaged communities.

International Community Health Services received a $25,000 grant for their Samoan/Pacific Islander and Mien Health Education and Literacy Project. The project aims to improve health literacy and health outcomes for Mien and Samoan/Pacific Islander adults in the Seattle area by increasing access to linguistically and culturally appropriate health education and services.

Under a $25,000 grant, Solid Ground's Apple Corps educates children about the importance of nutrition and physical activity, increases access to healthy food; and connects families to community resources.

Aetna awarded a $25,000 grant to the Washington State Department of Health to help primary care practices improve health literacy through the Washington Patient-Centered Medical Home Collaborative.

Aetna awarded a $25,000 grant to the Washington State Hospital Association for the ICU Safe Care initiative, which aims to expand the skills of ICU staff and reduce patient harm by identifying and fixing defects and building a culture of safety, while eliminating infections.

The Center for Multicultural Health received a $10,000 grant to develop and implement a four-session diabetes education class for African-Americans in the community.

Under a $10,000 grant, the ONFE Hispanic Foundation created health and wellness education seminars for Hispanics on life skills, personal financial management as well as healthy habits for a healthy life.

Aetna awarded a $10,000 sponsorship to Swedish Medical Center Foundation for the Celebrate Swedish annual gala and auction. Money raised will be used to offer free or discounted hospital services for people who can't afford care.

Eastside Domestic Violence Program received a $5,000 grant for their Safe Passage Breakfast to raise funds and awareness for life-saving services for victims of domestic violence in the community.

The Seattle Central Community College received a $5,000 grant for their Health Care Summit and Health Fair, which offered information booths, screening and health care presentations to the underserved.

The Aetna Foundation awarded a $2,500 sponsorship to Lifelong AIDS Alliance for their 23rd annual Seattle AIDS Walk.

The Susan G. Komen for the Cure received a $2,500 grant for their Breast Cancer Screening Diagnostic Fund, which provides breast and cervical screenings to women ages 40-64 who are at or below 250 percent of the Federal Poverty Level and are uninsured.

'Aetna and the Aetna Foundation are proud to partner with organizations across the country in support of their good work, and we look forward to continued relationships as we focus our giving in key areas going forward,' said Anne Beal, MD, MPH, president of the Aetna Foundation. 'For 2010 and beyond, we are transitioning to a new approach that encompasses a more concentrated grant-making focus on specific health issues of national concern, enhanced communication and measurement of the impact of our grants, a more proportionate distribution of our charitable giving across the country, and a more holistic relationship with our community partners that capitalizes on our employee presence and the generosity and talents of our employee volunteers.'

The Aetna Foundation has opened the call for proposals for the 2010 grant cycle. Grant applicants should visit AetnaFoundation.org for more information on how to apply for a grant and to learn more about the following Aetna Foundation focus areas for grant making in 2010 and beyond:

-Addressing the rising incidence of obesity among U.S. residents, including children;

-Promoting racial and ethnic equity in health and health care for common chronic conditions and for the prevention of infant mortality; and

-Advancing integrated health care, by:

-Improving coordination and communications among health care professionals;

-Creating informed and involved patients; and

-Promoting cost-effective, affordable care.

CORRECTING and REPLACING Aetna Appoints Anne C. Beal, MD, MPH to Head the Aetna Foundation. - Biotech Week

Please note revised third paragraph (see also Aetna Inc.).

The corrected release reads: AETNA APPOINTS ANNE C. BEAL, MD, MPH TO HEAD THE AETNA FOUNDATION Aetna Inc. (NYSE: AET) announced the appointment of Anne C. Beal, M.D., M.P.H. as head of the Aetna Foundation, the independent charitable and philanthropic arm of Aetna Inc. Since 1980, Aetna and the Aetna Foundation have contributed over $359 million in grants and sponsorships, and coordinated millions of volunteer hours by Aetna employees.

'As a physician who specializes in pediatric care and public health, Dr. Beal brings to the Foundation a unique combination of clinical and policy experience,' said Ronald A. Williams, Aetna chairman and chief executive officer, and chairman of the Aetna Foundation Board of Directors. 'We welcome Dr. Beal to the Aetna Foundation and look forward to working with her to further our commitment to enhancing quality health care practices and improvement of the public health through our business practices and charitable giving.'

Beal joins Aetna from The Commonwealth Fund, where she directed the Fund's program to improve health care quality for low-income and minority patient populations. Prior to the Commonwealth Fund, she was an attending physician at Massachusetts General Hospital, and on the faculty at Harvard Medical School. Dr. Beal's research focused on social influences on preventive health behaviors, disparities in health care, and quality of care for child health.

She is a recognized authority in health disparities, quality of care, and children's health -- topics on which she has published several articles in the medical literature, as well as a book titled, 'The Black Parenting Book: Caring for Our Children in the First Five Years.'

Beal earned an A.B. degree in biology from Brown University in 1984, a Doctorate in Medicine from Cornell University Medical College in 1988 and a Masters in Public Health from Columbia University in 1993. About The Aetna Foundation The Aetna Foundation is the independent charitable and philanthropic arm of Aetna Inc. Founded in 1972, the Foundation seeks to help build healthy communities by funding initiatives that improve the quality of life where our employees and customers live and work. The Foundation's giving is focused on health, diversity and employee community involvement, with broader programs in our home state of Connecticut. Since 1980, the Aetna and the Aetna Foundation have contributed over $359 million in grants, sponsorships and social investments. In 2008, Aetna and the Aetna Foundation contributed more than $25.5 million nationally. Additional information about the Aetna Foundation is available at www.aetna.com/foundation. Also, please visit the Aetna Foundation's 2008 Annual Giving report at: http://www.aetna.com/foundation/about/annualreports.html 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.

Keywords: , Health, Other Health, Philanthropy, Professional Services, Insurance, Foundation, General Health, Pediatr, Commonwealth Funds, Finance, Insurance, Investing, Investment, Mutual Funds, PediatricsBehavior, Child Health, Pediatric, Pediatrics, Public Health, Quality of Care, Aetna Inc.

Atlanta City Council Honors Aetna. - Obesity & Diabetes Week

Atlanta's City Council issued a proclamation commending Aetna (NYSE: AET) for supporting programs and raising awareness of the growing health problems of childhood obesity and diabetes in the Metro Atlanta community (see also Aetna).

Atlanta City Councilman Kwanza Hall presented the proclamation, which honored Aetna for its outreach efforts in Atlanta, particularly in heavily African American neighborhoods, where the effects of childhood obesity and diabetes are felt even more severely. Hall's District 2 includes Atlanta's Old Fourth Ward, the neighborhood that raised Martin Luther King Jr. After the proclamation, Hall praised Aetna for its work with District 2-based nonprofits including the King Center, the Butler Street YMCA, and 100 Black Men of Atlanta. 'A healthy city starts with healthy citizens,' said Hall.

In 2008, Aetna and the Aetna Foundation awarded community grants and sponsorships in Georgia totaling $725,000, with a particular focus on targeting diabetes and related conditions. In the first six months of 2009, they awarded grants totaling more than $350,000 for similar programs. Aetna provides health benefits to more than 600,000 people in Georgia.

'Aetna is deeply concerned about the impact of diabetes and childhood obesity in the Atlanta area,' said Cynthia Follmer, president of Aetna's Georgia market. 'These are health issues that threaten the continued well-being of our communities, and Atlanta has been particularly affected. That's why we're working with organizations in the area to raise awareness and find solutions to these health crises.'

Much of Aetna's support has been directed at the Atlanta area. One example is a $50,000 grant to the King Center, to help fund the center's Health and Wellness Forum. Aetna's support is providing information, education and services to empower people to take charge of their health and wellness and end racial health disparities.

Another is a $75,000 grant to the Butler Street YMCA, helping to fund a health and wellness expo and hosting an event at the YMCA with basketball legend Earvin 'Magic' Johnson, who shared his personal story of perseverance and health awareness with Atlanta youngsters.

Aetna also has a long-standing relationship with the 100 Black Men of Atlanta, working with the organization on a wide variety of health-related programs. Aetna and the Aetna Foundation have given $230,000 to the 100 Black Men of Atlanta over the past three years, targeting funds to efforts to improve awareness of childhood obesity and diabetes, both of which affect the African-American community with high frequency.

Recently, Aetna announced that it will provide $10,000 to create a memorial fund in honor of the late Terrell L. Slayton Jr., past chairman of the 100 Black Men of Atlanta. The funds are part of an $80,000 Aetna Foundation grant.

The memorial fund will provide scholarships for young people involved in Project Success, a tuition assistance and mentoring program started by the organization in 1987, and a favorite cause of Slayton. The fund will assist young people hoping to pursue careers in the health care field. 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.

Keywords: , Health, Children, Diabetes, Consumer, African-American, General Health, Pediatrics, Basketball, Entertainment, Insurance, Bariatrics, Obesity, Obesity and Diabetes, Wellness, Aetna.

Aetna Appoints Anne C. Beal, MD, MPH to Head the Aetna Foundation. - Biotech Week

Aetna Inc. (NYSE: AET) announced the appointment of Anne C. Beal, M.D., M.P.H. as head of the Aetna Foundation, the independent charitable and philanthropic arm of Aetna Inc. Since 1980, Aetna and the Aetna Foundation have contributed over $359 million in grants and sponsorships, and coordinated millions of volunteer hours by Aetna employees (see also Aetna Inc.).

'As a physician who specializes in pediatric care and public health, Dr. Beal brings to the Foundation a unique combination of clinical and policy experience,' said Ronald A. Williams, Aetna chairman and chief executive officer, and chairman of the Aetna Foundation Board of Directors. 'We welcome Dr. Beal to the Aetna Foundation and look forward to working with her to further our commitment to enhancing quality health care practices and improvement of the public health through our business practices and charitable giving.'

Beal joins Aetna from The Commonwealth Fund, where she directed the Fund's program to improve health care quality for low-income and minority patient populations. Prior to the Commonwealth Fund, she was an attending physician at the Harvard Medical School, working to secure funding for adolescent research. Prior to joining the Fund, she was an attending physician at Massachusetts General Hospital, and on the faculty at Harvard Medical School. Dr. Beal's research focused on social influences on preventive health behaviors, disparities in health care, and quality of care for child health.

She is a recognized authority in health disparities, quality of care, and children's health -- topics on which she has published several articles in the medical literature, as well as a book titled, 'The Black Parenting Book: Caring for Our Children in the First Five Years.'

Anne earned an A.B. degree in biology from Brown University in 1984, a Doctorate in Medicine from Cornell University Medical College in 1988 and a Masters in Public Health from Columbia University in 1993. About The Aetna Foundation The Aetna Foundation is the independent charitable and philanthropic arm of Aetna Inc. Founded in 1972, the Foundation seeks to help build healthy communities by funding initiatives that improve the quality of life where our employees and customers live and work. The Foundation's giving is focused on health, diversity and employee community involvement, with broader programs in our home state of Connecticut. Since 1980, the Aetna and the Aetna Foundation have contributed over $359 million in grants, sponsorships and social investments. In 2008, Aetna and the Aetna Foundation contributed more than $25.5 million nationally. Additional information about the Aetna Foundation is available at www.aetna.com/foundation. Also, please visit the Aetna Foundation's 2008 Annual Giving report at: http://www.aetna.com/foundation/about/annualreports.html 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.

Keywords: , Health, Other Health, Philanthropy, Professional Services, Insurance, Foundation, General Health, Pediatr, Commonwealth Funds, Finance, Insurance, Investing, Investment, Mutual Funds, PediatricsAdolescent Research, Behavior, Child Health, Pediatric, Pediatrics, Public Health, Quality of Care, Aetna Inc.

CLINTON PUSHES AWARENESS OF MEDICARE AID LOW-INCOME ELDERLY OFTEN UNAWARE FUNDS ARE AVAILABLE TO HELP PAY HEALTH PREMIUMS.(News/National/International) - Rocky Mountain News (Denver, CO)

Byline: Robert Burns Associated Press

WASHINGTON -- President Clinton opened a campaign Monday to alert low-income elderly Americans to Medicare assistance that many don't know they are entitled to receive.

Clinton said he was ordering a series of steps aimed at improving awareness, including sending more mailings to Medicare and Social Security households, encouraging simpler application processes and making eligibility information available on the Internet.

``This is a duty we owe our parents and our fellow citizens, and we should honor it. It is the right thing to do,'' Clinton said during a brief appearance in the Rose Garden.

Clinton cited a consumer group's study showing that many low-income elderly and disabled Americans do not take advantage of the assistance in paying their Medicare premiums.

``Over 3 million of the hardest pressed Medicare beneficiaries still do not receive the help to which they are due,'' Clinton said.

Medicare, the government health insurance for people over age 65 and the disabled, charges a monthly premium - now $43.80 - for coverage of doctors' office visits and other outpatient treatment. It is deducted automatically from a person's Social Security retirement or disability check.

Congress in 1989 instructed Medicaid - which insures the nation's poor and is run jointly by the federal and state governments - to pick up the tab for certain low-income beneficiaries. Over the years, eligibility requirements have been relaxed, opening the aid to more people.

The newest expansion is limited, providing $1.5 billion in help over the next five years to people with incomes higher than ever before. It means an estimated 1.6 million additional Medicare beneficiaries are eligible for help on a first-come, first-serve basis, until the money runs out.

Nationwide, only 4,723 people were receiving the aid as of June, although enough money was set aside in last year's balanced budget act to help nearly half a million people in 1998, according to a study released Monday by Families USA, an advocacy group.

In his remarks Monday, Clinton also said he was troubled by a New York Times report that the nation's biggest health maintenance organizations, or HMOs, are withdrawing managed care programs for the poor and elderly. The newspaper said big organizations such as Aetna and U.S. Healthcare have shut down some Medicaid services in 12 states.