HARTFORD, Conn., December 8, 2003 — Aetna (NYSE: ΑET) announced today that it will offer the newly authorized Health Savings Accounts (HSAs) as an option in its industry-leading Aetna HealthFund family of consumer-directed health plan products beginning January 1, 2004. The Medicare Prescription Drug, Improvement, and Modernization Act of 2003, signed into law by President Bush today, gives consumers new alternatives for paying for health care expenses and planning for retirement with the creation of tax-deductible health savings accounts that permit unused balances to be carried forward from year to year and to be rolled over if the consumer changes employment.
"Aetna applauds Congress and the Bush Administration for giving Americans additional flexibility and freedom to take a more active role in ensuring that their future health care needs are paid for," said Aetna President Ronald A. Williams. "Through our Aetna HealthFund suite of consumer-directed products and our emphasis on consumer tools and information, Aetna has taken a leadership role in encouraging Americans to become active, educated health care consumers. Health Savings Accounts are a significant new option in the consumer-directed continuum that provides consumers with another opportunity to better plan for and fund their current and retiree health care expenses."
HSAs are tax-advantaged accounts created for the purpose of paying for qualified medical expenses for individuals covered under high-deductible health plans. Under the law, contributions to the HSA can be made by the employer, the employee or both.
Aetna will offer HSAs as a complement to its flagship consumer-directed product family, Aetna HealthFund. "Our Aetna HealthFund offerings have been tremendously well received by employers and consumers," said Williams. "We expect to have approximately 150,000 HealthFund members in 2004. HSAs offer an additional option in configuring consumer-directed plans and will help make the advantages of these plans available to more employers and health care consumers."
Aetna will offer HSAs alongside qualified indemnity, preferred provider, point-of-service and HMO plan designs, on both a self-funded and fully insured basis (subject to state regulation). Employers will be able to add preventive, vision, dental and other benefits as permitted under the new law. This broad range of product designs, benefit options and funding arrangements will provide employers with greater choice and flexibility when choosing the product combination that best meets their needs.
By fully integrating administration of the HSA with a health plan and other ancillary services, Aetna will offer a number of unique advantages that will make HSAs easy to use for both employers and employees. These include single claim submission; seamless access to Aetna’s extensive provider network; integrated reporting; integrated pharmacy, dental and long-term care offerings; web-based self-service tracking for all health benefits available 24 hours a day, seven days a week; and nationwide coverage.
Aetna is one of the nation’s leading providers of health care, dental, pharmacy, group life, disability and long-term care products, serving approximately 13.0 million medical members, 11.0 million dental members, 7.4 million pharmacy members and 12.1 million group insurance customers, as of September 30, 2003. The company has expansive nationwide networks of more than 590,000 health care services providers, including over 355,000 primary care and specialist physicians and 3,577 hospitals. For more information about Aetna, please visit the company’s web site at www.aetna.com.
