BLUE BELL, PA, July 1, 1999 — Aetna U.S. Healthcare®, the health benefits unit of Aetna
(NYSE: ΑET), today submitted very limited service area reductions, premium and benefit
adjustments to the Health Care Financing Administration (HCFA) for Aetna U.S. Healthcare
Golden MedicareTM HMO and NYLCare 65 products for plan
year 2000. Included in this filing will be notice of a five-county reduction in our
service areas: Ventura county in California, and Ashland, Crawford, Knox, and Richland
counties in Ohio. This action will affect a total of fewer than 1,700 Medicare members, or
less than one-half of one percent of total Medicare membership. The company provides Medicare HMOs in fifteen states,
including Arizona, California, Connecticut, Florida, Georgia, Illinois, Indiana, Kentucky,
Louisiana, Maine, New Jersey, New York, Ohio, Pennsylvania and Washington, and the NYLCare
65 Medicare HMOs in Dallas and Houston, Texas. Aetna U.S. Healthcare Medicare HMO
membership as of March 31, 1999, was approximately 546,000.
"Aetna U.S. Healthcare is pleased to be able
to continue to offer our Medicare HMOs in a large number of markets nationwide," said
Timothy Nolan, head of the field organization for Aetna U.S. Healthcare. "We are
committed to offering our members a quality, comprehensive Medicare benefit plan at a
reasonable price, which would include significant additional benefits, such as coverage
for hearing aids, comprehensive preventive services and prescription drug coverage in most
plans."
In the counties where the company was unable to
provide comprehensive benefits at reasonable supplemental premiums due to the federal
payment structure, the company chose to withdraw its Medicare HMO.
"Aetna U.S. Healthcare, in partnership with
HCFA, will develop a smooth transition process for Medicare members in the affected
areas," continued Nolan. Members will be receiving details regarding their options
shortly; immediate action is not required. Members can call the toll-free number on their
ID cards with questions they may have regarding this announcement. Medicare plan
comparisons will be available during September 1999 on HCFA’s website (www.hcfa.gov).
Aetna U.S. Healthcare is the nation’s
leading health and related benefits organization, providing a full spectrum of products
ranging from health maintenance organizations (HMOs) to indemnity health insurance, group
life and disability products, and dental, vision, and pharmacy benefits to approximately
16 million Americans. In addition, Aetna U.S. Healthcare provides quality measurement and
improvement programs and data analysis for providers and purchasers of health care.
