Aetna Completes Sale of Missouri Medicaid Business

  Aetna Completes Sale of Missouri Medicaid Business

Business Wire

HARTFORD, Conn. -- April 01, 2013

Aetna (NYSE: AET) today announced that it has completed the sale of its
Missouri Medicaid business, called Missouri Care, to WellCare Health Plans,
Inc. (NYSE: WCG). Financial terms were not disclosed.

As previously announced, the sale of Missouri Care is related to Aetna’s
proposed acquisition of Coventry Health Care, Inc., which operates a Missouri
Medicaid plan called HealthCare USA. Aetna plans to operate HealthCare USA
when the Coventry acquisition is completed. Aetna continues to expect that the
Coventry acquisition will be completed in mid-2013.

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 Regarding Forward-Looking Statements

Statements in this press release that are forward-looking, including our
projection as to the closing date for the proposed Coventry transaction and
our operation of HealthCare USA following completion of the proposed Coventry
acquisition, are based on management’s estimates, assumptions and projections,
and are subject to significant uncertainties and other factors, many of which
are beyond our 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 timing to
consummate the proposed Coventry transaction; the risk that a condition to
closing of the proposed acquisition may not be satisfied; the risk that one of
the applicable required regulatory approvals for the proposed transaction is
delayed, is not obtained or is obtained subject to conditions that are not
anticipated; the outcome of pending or future litigation relating to the
proposed transaction; the diversion of management time on acquisition- and/or
divestiture-related issues; and changes in our 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 pricing and 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, 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 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); adverse and less predictable economic conditions in the U.S.
and abroad (including unanticipated levels of, or increases in the rate of,
unemployment); our ability to diversify our sources of revenue and earnings
(including by expanding our foreign operations), transform our business model
and optimize our business platforms; the success of our Accountable Care
Solutions and health information technology initiatives; adverse changes in
size, product or geographic mix or medical cost experience of membership;
managing executive succession and key talent retention, recruitment and
development; 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; failure
to adequately implement Health Care Reform; reputational issues arising from
our social media activities, data security breaches, other cybersecurity risks
or other causes; the outcome of various litigation and regulatory matters,
including audits, challenges to our minimum MLR rebate methodology and/or
reports, guaranty fund assessments, intellectual property litigation 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; our ability to integrate, simplify, and
enhance our existing information technology systems and platforms to keep pace
with changing customer and regulatory needs; 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; 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; increases resulting from unfavorable changes
in contracting or re-contracting with providers, and increased pharmacy
costs); our ability to manage health care and other benefit costs; adverse
program, pricing, funding or audit 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; our ability to reduce administrative expenses while maintaining
targeted levels of service and operating performance; a downgrade in our
financial ratings; our 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 demonstrate that our products lead to access
to quality care by our members; 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; 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; and 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. For more discussion of important risk factors that may materially
affect Aetna, please see the risk factors contained in Aetna's 2012 Annual
Report on Form 10-K ("Aetna's 2012 Annual Report") on file with the Securities
and Exchange Commission. You also should read Aetna's 2012 Annual Report 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
 
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