Aetna 2007 Annual Report Download - page 11

Our 2007 acquisitions and expansions will
allow us to extend our reach farther across
the globe, to make a broader package of
expatriate offerings available to individuals
and multinational corporate clients. At the
same time, Aetna has carved out a new
path to service for an important subset of
the population at home — those receiving
health care services through Medicaid.
Schaller Anderson
On July 31, 2007, Aetna completed
its acquisition of Phoenix-based
Schaller Anderson, a leading provider
of health care management services for
Medicaid plans. Schaller Anderson also
manages commercial self-funded health
plans and behavioral health services in
select markets.
As of the acquisition date, our
combined Medicaid business unit
became an organization of almost 2,000
professionals dedicated to serving more
than 1.3 million members. Schaller
Anderson’s wholly owned subsidiaries
operate ASO (Administrative Services
Organization) and risk Medicaid services
for approximately 600,000 individuals
in Arizona, California, Delaware, Maine,
Maryland, Missouri and Texas. Schaller
Anderson also provides employer-sponsored
benefi ts, medical management and other
services under ASO arrangements.
Approximately 100,000 members are
enrolled through employer-sponsored
commercial plans. Although largely focused
on the Medicaid market, Schaller Anderson
provides behavioral health benefi ts and
Employee Assistance Programs for 450,000
individuals covered by public programs,
group health plans or employers in Arizona
and Delaware. Schaller Anderson provides
medical management services in Maine
and Arizona, and care management services
in New Hampshire.
Goodhealth Worldwide
On October 1, 2007, Aetna completed
its acquisition of London-headquartered
Goodhealth Worldwide. Goodhealth is a
leading managing general underwriter
(or underwriting agent) for international
private medical insurance for individuals,
small and medium-sized enterprises, and
large multinational clients around the world
for their expatriate benefi ts.
Goodhealth now is a unit of Aetna Global
Benefi ts, the company’s international
operations. Aetna Global Benefi ts now
has operations in Europe, Asia and the
Middle East. The acquisition broadens
Aetna Global Benefi ts’ expatriate offerings
through access to new customers and new
geographies in Europe, Asia, the Middle
East, Africa and Latin America. The move
enhanced Aetna’s global capabilities
through technology and local service,
making Aetna Global Benefi ts the
largest U.S.-based expatriate health
insurance carrier.
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Expanding business in Europe
In October 2007, Aetna further
expanded its global capabilities when
it was appointed one of the suppliers
on England’s Framework for Procuring
External Support for Commissioners
(FESC) to offer a wide range of support
to Primary Care Trusts (PCTs), part of the
National Health Service (NHS) in England.
PCTs develop health care plans that best
meet the needs of their individual patient
populations and commission services
with providers. The FESC will provide
PCTs with easy access to a framework of
expert suppliers who can support them
in undertaking their commissioning work.
Aetna was one of 14 companies named
to the FESC and has subsequently begun
to build a business in London to service
this important venture.
Services that Aetna will offer to local
PCT managers range from specifi c tasks
such as designing medical management
programs, also known as demand
management, to comprehensive
contracting and procurement of services.
2007 expansion of Aetna Medicaid business with
Schaller Anderson acquisition
States where Aetna previously provided Medicaid services