Aetna Wins Contract For Connecticut Medicaid, Uninsured Program

HARTFORD, Conn.— Aetna (NYSE: AET ) has been notified that the Connecticut Department of Social Services (DSS) has awarded a Medicaid managed care contract to Aetna Better HealthSM, Aetna’s Medicaid business.

Aetna Better Health will administer Medicaid benefits for the state of Connecticut, as well as its new program, Charter Oak Health Plan, for uninsured adults who meet certain eligibility criteria. The Medicaid business includes the state’s HUSKY A program, as well as Children’s Health Insurance Plan (CHIP) benefits to HUSKY B members.

Enrollment for the Charter Oak program, proposed by Connecticut Governor Jodi Rell in 2006, is expected to begin as early as July, with the provision of health care services following enrollment. Services can start as early as August for the first Charter Oak enrollees. The program will offer health care coverage to uninsured residents earning less than 300 percent of the federal poverty level ($52,800 for a family of three). Enrollment in the HUSKY programs, which serve approximately 340,000 residents, is expected to transition to the insurers over the balance of 2008.

“This news further validates our decision to join Aetna’s resources with the Medicaid-specific expertise of Schaller Anderson last year,” said Aetna President Mark Bertolini. “I am very pleased that our first major win under the combined efforts of Aetna and Schaller is in our home state of Connecticut. With the strength of our integrated organization, we are able to help the state provide for the health care needs of its Medicaid population as well as many of their uninsured residents.”

“We are delighted to be part of the solution for the state of Connecticut and the members of the HUSKY and Charter Oak health care programs,” said Tom Kelly, CEO of Schaller Anderson, Aetna’s Medicaid business unit. “We are confident that we can deliver on the promise of managed care -- improved health status, better access to care, more emphasis on prevention and education -- and establish a durable partnership with health care providers and community leaders that is focused on continuous improvement.”

Today Aetna serves approximately 870,000 Medicaid members in 10 states.