Aetna Announces Leadership Changes in Line with Growth Strategy

  Aetna Announces Leadership Changes in Line with Growth Strategy

 Joseph M. Zubretsky, Shawn M. Guertin, Karen S. Rohan Appointed to New Roles

Business Wire

HARTFORD, Conn. -- January 31, 2013

Aetna (NYSE: AET) today announced changes to its executive leadership team as
part of the company’s growth strategy and a continuing effort to align its
businesses with the evolving needs of its customers. These new roles will
report directly to Chairman, CEO and President Mark T. Bertolini.

Joseph M. Zubretsky, senior executive vice president and chief financial
officer, will lead National Businesses, a new organization that includes
Aetna’s National Accounts business, as well as Aetna’s emerging businesses,
including Accountable Care Solutions, ActiveHealth Solutions, Medicity and
iTriage. The organization Zubretsky will lead also includes Aetna’s national
network contracting and care management areas; Aetna’s Specialty Products,
including Behavioral Health, Pharmacy and Worker’s Compensation; and
Enterprise Strategy and Corporate Development.

As part of the planned management transition, Zubretsky will be succeeded in
his role as chief financial officer by Shawn M. Guertin, effective February
25, 2013. Guertin has most recently been Aetna’s head of Business Segment
Finance, where he managed the finance organizations of all of Aetna’s
businesses. Prior to joining Aetna in 2011, Guertin served for nearly five
years as executive vice president, chief financial officer and treasurer of
Coventry Health Care, Inc.

Karen S. Rohan, executive vice president, also will assume a newly created
position leading Aetna’s Local and Regional Businesses. Rohan’s
responsibilities will include leadership of the company’s Individual, Small
Group and Middle Market businesses; its field organization, including regional
alignment to customers; its local network strategy, regional sales and
distribution infrastructure; and its Group businesses. Rohan will continue to
lead Aetna’s integration efforts for its proposed acquisition of Coventry,
which is expected to close in mid-2013.

“The management changes we are making ensure that we have Aetna’s strongest
leaders focused on driving our growth strategy across our core and emerging
businesses,” said Bertolini. “We have a unique opportunity to drive positive
change in the health care marketplace by fundamentally changing the
relationship between health plans, providers and patients to one focused on
improving the quality of care as a way to reduce costs. Aligning Aetna’s
Accountable Care Solutions, care management and national network organizations
and our flagship National Accounts business strengthens our ability to move
decisively toward that goal. Joe Zubretsky is the right leader to take this
effort forward.

“After nearly two years of strong performance in senior financial roles at
Aetna and with his in-depth knowledge of Coventry, Shawn Guertin is well
prepared to step into the role of chief financial officer,” Bertolini said.

Bertolini added: “Our proposed acquisition of Coventry also represents a
strong opportunity for Aetna to create long-term shareholder value. In order
to successfully integrate Coventry, we need to take advantage of the best of
both organizations. And in part that means getting decision making much closer
to the customer, by empowering and strengthening our regional businesses.
Combining these responsibilities under Karen Rohan will help drive that
result.”

After 26 years in the industry and 20 years at Aetna, Frank McCauley will be
retiring from Aetna later this year. McCauley has been a distinguished leader,
beginning his career in the company’s Medicare business and moving on to
successfully lead a wide variety of regional and national businesses to
profitable growth. Most recently, he served as a member of Aetna’s executive
committee and led Aetna’s Commercial businesses, including National Accounts,
Individual, Small Group and Middle Markets.

“Frank and I have worked closely for eight years, and many Aetna successes can
be attributed to his efforts,” Bertolini said. “He is respected by our
leadership team and employees across the organization. Until his retirement,
Frank will work with me on a number of initiatives, including preparing the
company for health reform. We wish him the best in his future endeavors.”

About Aetna

Aetna is one of the nation's leading diversified health care benefits
companies, serving approximately 37.3 million people with information and
resources to help them make better informed decisions about their health care.
Aetna offers a broad range of traditional, 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.

CAUTIONARY STATEMENT; ADDITIONAL INFORMATION -- -- Certain information in this
press release is forward-looking, including our projections as to the impact
of the management changes described in this press release on us and our
businesses; our ability to change relationships in the health care
marketplace; the impact of our proposed acquisition of Coventry Health Care,
Inc. (“Coventry”) on long-term shareholder value; and our ability to
successfully integrate Coventry following the completion of the proposed
acquisition. Forward-looking information is based on management's estimates,
assumptions and projections, and is subject to significant uncertainties and
other factors, many of which are beyond Aetna's control. Important risk
factors could cause actual future results and other future events to differ
materially from those currently estimated by management, including, but not
limited to: the implementation of health care reform legislation; the timing
to consummate the proposed acquisition of Coventry and the proposed sale of
our Missouri Medicaid business (“Missouri Care”); the risk that a condition to
closing the proposed acquisition or proposed sale may not be satisfied; the
risk that a regulatory approval for the proposed acquisition of Coventry or
the proposed sale of Missouri Care is delayed, is not obtained or is subject
to conditions that are not anticipated; our ability to achieve the synergies
and value creation contemplated by the proposed acquisition; our ability to
promptly and effectively integrate Coventry's businesses; the diversion of
management time on acquisition or sale related issues; and changes in Aetna's
future cash requirements, capital requirements, results of operations,
financial condition and/or cash flows. Health care reform will significantly
impact our business operations and financial results, including our medical
benefit ratios. Components of the legislation will be phased in over the next
several years, and we will be required to dedicate material resources and
incur material expenses during that time to implement health care reform. Many
significant parts of the legislation, including health insurance exchanges,
Medicaid expansion, the scope of "essential benefits," employer penalties and
the implementation of minimum medical loss ratios, require further guidance
and clarification at both the federal level and/or in the form of regulations
and actions by state legislatures to implement the law. In addition, pending
efforts in the U.S. Congress to amend or restrict funding for various aspects
of health care reform, and the possibility of additional litigation
challenging aspects of the law continue to create additional uncertainty about
the ultimate impact of health care reform. As a result, many of the impacts of
health care reform will not be known for the next several years. Other
important risk factors include: adverse and less predictable economic
conditions in the U.S. and abroad (including unanticipated levels of, or
increases in the rate of, unemployment); adverse changes in health care reform
and/or other federal or state government policies or regulations as a result
of health care reform or otherwise (including legislative, judicial or
regulatory measures that would affect our business model, restrict funding for
or amend various aspects of health care reform, limit our ability to price for
the risk we assume and/or reflect reasonable costs or profits in our pricing,
such as mandated minimum medical benefit ratios, eliminate or reduce ERISA
pre-emption of state laws (increasing our potential litigation exposure) or
mandate coverage of certain health benefits); our ability to differentiate our
products and solutions from those offered by our competitors, and demonstrate
that our products lead to access to better quality of care by our members;
unanticipated increases in medical costs (including increased intensity or
medical utilization as a result of flu, increased COBRA participation rates or
otherwise; changes in membership mix to higher cost or lower-premium products
or membership-adverse selection; changes in medical cost estimates due to the
necessary extensive judgment that is used in the medical cost estimation
process, the considerable variability inherent in such estimates, and the
sensitivity of such estimates to changes in medical claims payment patterns
and changes in medical cost trends; increases resulting from unfavorable
changes in contracting or re-contracting with providers, and increased
pharmacy costs); failure to achieve and/or delays in achieving desired rate
increases and/or profitable membership growth due to regulatory review or
other regulatory restrictions, the difficult economy and/or significant
competition, especially in key geographic areas where membership is
concentrated, including successful protests of business awarded to us; adverse
changes in size, product mix or medical cost experience of membership; our
ability to diversify our sources of revenue and earnings; adverse program,
pricing or funding actions by federal or state government payors, including as
a result of sequestration and/or curtailment or elimination of the Centers for
Medicare & Medicaid Services' star rating bonus payments; the ability to
reduce administrative expenses while maintaining targeted levels of service
and operating performance; the ability to successfully implement our agreement
with CVS Caremark Corporation on a timely basis and in a cost-efficient manner
and to achieve projected operating efficiencies for the agreement; our ability
to integrate, simplify, and enhance our existing information technology
systems and platforms to keep pace with changing customer and regulatory
needs; the success of our health information technology initiatives; our
ability to successfully integrate our businesses (including Medicity, Prodigy
Health Group, PayFlex, and Genworth Financial Inc.'s Medicare Supplement
business and other businesses we may acquire in the future, including
Coventry) and implement multiple strategic and operational initiatives
simultaneously; managing executive succession and key talent retention,
recruitment and development; the outcome of various litigation and regulatory
matters, including guaranty fund assessments and litigation concerning, and
ongoing reviews by various regulatory authorities of, certain of our payment
practices with respect to out-of-network providers and/or life insurance
policies; reputational issues arising from our social media activities, data
security breaches, other cybersecurity risks or other causes; the ability to
develop and maintain relations with providers while taking actions to reduce
medical costs and/or expand the services we offer; our ability to maintain our
relationships with third party brokers, consultants and agents who sell our
products; increases in medical costs or Group Insurance claims resulting from
any epidemics, acts of terrorism or other extreme events; and a downgrade in
our financial ratings. For more discussion of important risk factors that may
materially affect Aetna, please see the risk factors contained in Aetna's 2011
Annual Report on Form 10-K ("Aetna's 2011 Annual Report"), Aetna's Quarterly
Reports on Form 10-Q for the quarters ended March 31, 2012, June 30, 2012 and
September 30, 2012 (together Aetna's "Quarterly Reports"), each on file with
the Securities and Exchange Commission (the “SEC”). You also should read
Aetna's 2011 Annual Report and Aetna's Quarterly Reports on file with the SEC
and Aetna's 2012 Annual Report on Form10-K when filed with the SEC for a
discussion of Aetna's historical results of operations and financial
condition.

Contact:

Aetna
Media Contact:
Cynthia Michener, 860-273-8553
MichenerC@aetna.com
or
Investor Contact:
Tom Cowhey, 860-273-2402
cowheyt@aetna.com
 
Press spacebar to pause and continue. Press esc to stop.