Aetna 2005 Annual Report Download - page 9

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■We also continued to see strong growth in our specialty
products. Membership in dental products increased more than
9 percent to 13.1 million, while membership in our pharmacy
products increased approximately 12 percent to 9.4 million.
■We now serve 27.9 million unique members.
An overwhelming majority of the increase in membership
was organic – from winning customers in the marketplace – not
purchased in a business acquisition.
On a percentage basis, we experienced stronger organic
membership growth than any of our national competitors. This
speaks to the strength of Aetna’s product offerings, as well as
customers’ desire for integrated product solutions. For example,
more than 50 percent of our January 1, 2006, sales among
National Accounts customers included two or more Aetna
products. We believe this trend will continue and fuel significant
cross-sell opportunities among all of our products – medical,
pharmacy, dental, behavioral health, group life, long-term
care and disability, and medical management – and across all
customer markets.
Our rigorous focus on health care quality and costs also
contributed significantly to our results. For our customers, we
managed a full-year commercial risk medical cost trend of
a little over 8 percent. Our stable medical cost trend and
a disciplined approach to pricing allowed Aetna to continue
having one of the best medical cost ratios in the industry.
In the full-year 2005, Aetna’s commercial risk medical cost
ratio was 78.4 percent, excluding favorable prior-period
reserve development.
5
2005 Increase
in Membership
8%
Increase in
medical members
9%
Increase in
dental members
12%
Increase in
pharmacy members
27.9 million
Unique members
served in 2005
On a percentage basis,
we experienced stronger
organic membership
growth than national
competitors.