HARTFORD, Conn., July 15, 1998 — Aetna Inc. (NYSE: ΑET) today announced the completion of the acquisition of NYLCare Health Plans, the health business unit of New York Life Insurance Company.
"With the purchase of NYLCare Health Plans, we reaffirm Aetna’s position as the nation’s premier benefits company and strengthen our ability to provide customers with access to the high-quality, affordable health care coverage they need," said Aetna Chairman and CEO Richard L. Huber. "Now, Aetna is positioned better than ever to achieve its growth objectives. The acquisition significantly increases our health enrollment in several key markets -- particularly in Texas and the Maryland/D.C./Virginia region -- and enhances our strategic position in the New York and New Jersey, Illinois, Maine and Washington markets, as well."
With the acquisition of NYLCare Health Plans, Aetna U.S. Healthcare will provide health care benefits to nearly 16 million members nationwide. Aetna is approaching the integration on a market-by-market basis over the next 24 to 30 months, with the goal of substantially completing the integration by the end of the year 2000. The company currently plans to integrate smaller markets first and continue to run parallel plans in larger markets, prior to integration.
"Like Aetna U.S. Healthcare, NYLCare is a leader in quality and service, and shares our commitment to raising the quality of health care," said Mike Cardillo, president of Aetna U.S. Healthcare.
"Going forward, the integration will proceed at a pace that is consistent with our goal of preserving and improving customer service," Cardillo said. "For example, we plan to maintain NYLCare’s patient management, claims and member services functions in its three largest markets: Greenbelt, Md., Houston and Dallas, Texas -- as part of Aetna U.S. Healthcare service operations."
Aetna is a leading provider of health, retirement and financial services benefits. Through its three core businesses, Aetna U.S. Healthcare, Aetna Retirement Services and Aetna International, the company provides 35 million people worldwide with quality products, services and information to help them manage best what matters most: their health and financial well-being.
CAUTIONARY STATEMENT - Certain information in this press release is forward looking including, but not limited to, statements concerning Aetna’s integration plans for the NYLCare acquisition and its plans to improve service levels. That information is based on management’s estimates, assumptions and projections and is subject to significant uncertainties, many of which are beyond the control of the company. Important risk factors that could cause Aetna’s actual future results and plans to differ materially from those currently estimated by management include, but are not limited to, the ability to successfully integrate the NYLCare acquisition on a timely basis and in a cost-efficient manner (including integrating the Aetna and NYLCare management and information systems), adverse government regulation (particularly in key markets where Aetna and NYLCare operate), unanticipated increases in medical costs resulting from changes in contracting or recontracting with providers, and changes in membership in key markets following the transaction. For a discussion of these and other important risk factors that may materially affect the forward-looking statements herein, please see the risk factors contained in Aetna’s 1997 Annual Report on Form 10-K filed with the Securities and Exchange Commission and 1997 Annual Report to Shareholders, which risk factors are incorporated herein by reference. This press release does not constitute an offer or solicitation of an offer to purchase Aetna securities.
